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Environmental Kuznets curve for deforestation in Eastern Europe: a panel cointegration analysis

Author

Listed:
  • Eleni Zafeiriou

    (Democritus University of Thrace)

  • Grigorios L. Kyriakopoulos

    (National Technical University of Athens (NTUA))

  • Veronika Andrea

    (Democritus University of Thrace)

  • Garyfallos Arabatzis

    (Democritus University of Thrace)

Abstract

Deforestation, a major cause of climate change, in Eastern European countries has been an activity coupled with agricultural expansion mainly within the time period of political transition. The present study examines the environmental impact of deforestation and its association with agricultural income as synopsized in environmental Kuznets curve. More specifically, carbon emissions generated by deforestation per hectare (COD)–agricultural income relationship as reflected by the net value added (NVA) per capita of the rural population are studied with the assistance of three panel data models, namely the fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and Poold Mean Group autoregressive distributed lag (PMG-ARDL) cointegration technique. The research findings do not validate the environmental Kuznets curve (EKC) in its traditional form, but they verify the inverse N-shaped trajectory (FMOLS, DOLS), or N-shaped trajectory (PMG–ARDL methodology). The results provide policy makers with motivation to focus on agro-economic expansion based on productivity or use of marginal lands and not on land-use change based on deforestation.

Suggested Citation

  • Eleni Zafeiriou & Grigorios L. Kyriakopoulos & Veronika Andrea & Garyfallos Arabatzis, 2023. "Environmental Kuznets curve for deforestation in Eastern Europe: a panel cointegration analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9267-9287, September.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:9:d:10.1007_s10668-022-02435-y
    DOI: 10.1007/s10668-022-02435-y
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