Is economic growth good or bad for the environment? Empirical evidence from Korea
The effects of economic growth on the environment in Korea, for a given level of energy consumption, and fossil fuels and nuclear energy in electricity production, are examined in a dynamic cointegration framework. To that end, the autoregressive distributed lag (ARDL) approach is used. We find empirical evidence supporting the existence of the environmental Kuznets curve (EKC) hypothesis for Korea; that is, economic growth indeed plays a favorable role in influencing environmental outcomes. It is also found that, in both the short- and long-run, nuclear energy has a beneficial effect on environmental quality, whereas fossil fuels in electricity production and energy consumption have a detrimental effect on the environment.
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