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Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?

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  • Shahbaz, Muhammad
  • Haouas, Ilham
  • Hoang, Thi Hong Van

Abstract

Based on a sample of 1974–2016 annual data of Vietnam, we show that the EKC does not exist in the short run but only in the long run. However, the N-shape describes better the long-run income-pollution relationship. This implies that Vietnam can expect a temporary reduction in CO2 emissions at a given stage of economic growth. However, this will be followed by a further increase of CO2 emissions after reaching another income turning point. The Vietnamese government should thus focus on long-term economic and environmental strategies. A robustness check shows that these results are not impacted by the variables' selection.

Suggested Citation

  • Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    • Handle: RePEc:eee:ememar:v:38:y:2019:i:c:p:197-218
    DOI: 10.1016/j.ememar.2018.12.006
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    More about this item

    Keywords

    CO2 emissions; Economic structure; Environmental Kuznets curve (EKC); N-shape;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

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