Search Advanced

Quantitative Finance and Economics

2018, Volume 2, Issue 4: 981-1000. doi: 10.3934/QFE.2018.4.981
Previous Article Next Article
Research article Special Issues

Environmental Kuznets curve hypothesis in a financial development and natural resource extraction context: evidence from Tunisia

  • 1.
    Presbyterian University College, Ghana, School of Business and Economics, P.O. Box 59 Abetifi, Eastern Region Ghana
  • 2.
    Department of Agricultural and Resource Economics, University for Development Studies, P.O. Box TL 1882, Tamale, Northern Region, Ghana
  • 3.
    Department of Economics, University of Ghana P.O. Box LG 57, Legon, Accra, Ghana
  • Received: 24 October 2018 Accepted: 11 December 2018 Published: 19 December 2018

  • JEL Codes: C13, D53, O13, O16, O44, P28, Q01

  • This study investigates empirically the Environmental Kuznets Curve hypothesis within a financial development and natural resource extraction context for aggregate and sectoral carbon dioxide (CO2) emissions in Tunisia. Using annual time-series data covering the period 1971–2016 it is found that financial development increases aggregate CO2, CO2 emissions from the transport sector, and CO2 consumption from liquid fuel but reduces CO2 emissions from manufacturing and construction as well as the residential and building. Natural resource extraction exerts upward pressure on CO2 emissions from the manufacturing and construction sector as well as from the consumption of gaseous fuels whiles the contrary is found for CO2 emissions. The existence of the EKC hypothesis or otherwise within the context of financial development and natural resources extraction is found to be dependent on the source of CO2 emissions in Tunisia. The findings among other things imply the enforcement of stringent environmental laws that ensure environmental quality amidst natural resources extraction and financial development.

    Citation: Paul Adjei Kwakwa, Hamdiyah Alhassan, Solomon Aboagye. Environmental Kuznets curve hypothesis in a financial development and natural resource extraction context: evidence from Tunisia[J]. Quantitative Finance and Economics, 2018, 2(4): 981-1000. doi: 10.3934/QFE.2018.4.981

    Related Papers:

  • This study investigates empirically the Environmental Kuznets Curve hypothesis within a financial development and natural resource extraction context for aggregate and sectoral carbon dioxide (CO2) emissions in Tunisia. Using annual time-series data covering the period 1971–2016 it is found that financial development increases aggregate CO2, CO2 emissions from the transport sector, and CO2 consumption from liquid fuel but reduces CO2 emissions from manufacturing and construction as well as the residential and building. Natural resource extraction exerts upward pressure on CO2 emissions from the manufacturing and construction sector as well as from the consumption of gaseous fuels whiles the contrary is found for CO2 emissions. The existence of the EKC hypothesis or otherwise within the context of financial development and natural resources extraction is found to be dependent on the source of CO2 emissions in Tunisia. The findings among other things imply the enforcement of stringent environmental laws that ensure environmental quality amidst natural resources extraction and financial development.


    加载中
    [1] Aboagye S (2017) Economic Expansion and Environmental Sustainability Nexus in Ghana. Afr Dev Rev 29: 155–168. doi: 10.1111/1467-8268.12247
    [2] Aboagye S, Nketiah-Amponsah E, Barimah A (2014) Disaggregated Growth and Environmental quality in developing countries: Some evidence from Sub Saharan. Rev Soc Sci 9: 17–30.
    [3] Aboagye S, Kwakwa PA (2014) The relationship between economic growth and environmental sustainability: evidence from selected Sub Sahara African countries. Ghanaian J Econ 2: 135–153.
    [4] Adom PK, Kwakwa PA, Amankwaa A (2018) The long-run effects of economic, demographic, and political indices on actual and potential CO2 emissions. J Environ Management 218: 516–526. doi: 10.1016/j.jenvman.2018.04.090
    [5] Akin CS (2014) The impact of foreign trade, energy consumption and income on CO2 emissions. Int J Energy Econ Policy 4: 465–475.
    [6] Amri F (2018) Carbon dioxide emissions, total factor productivity, ICT, trade, financial development, and energy consumption: testing environmental Kuznets curve hypothesis for Tunisia. Environ Sci Pollut Res 1–11.
    [7] Amuakwa-Mensah F, Adom PK (2017) Quality of institution and the FEG (forest, energy intensity, and globalization) environment relationships in sub-Saharan. Afri Environ Sci Pollut Res 24: 17455–17473. doi: 10.1007/s11356-017-9300-2
    [8] Alper A, Onur G (2016) Environmental Kuznets curve hypothesis for sub-elements of the carbon emissions in China. Nat Hazards 82: 1327–1340. doi: 10.1007/s11069-016-2246-8
    [9] Alam MM, Muradb MW, Nomanc AHM, et al. (2016) Relationships amongcarbon emissions, economic growth, energy consumption and population growth: testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia. Ecol Indic 70: 466–479. doi: 10.1016/j.ecolind.2016.06.043
    [10] Al-Mulali U, Ozturk I (2016) The investigation of environmental Kuznets curve hypothesis in the advanced economies: the role of energy prices. Renew Sustain Energy Rev 54: 1622–31. doi: 10.1016/j.rser.2015.10.131
    [11] Behera B, Vishnu R (2011) Analysing the Impact of Anthropogenic Factors on the Environment in India. Environ Nat Resources Res 1: 117–129.
    [12] Boopen S, Vinesh S (2011) On the Relationship between Carbon Emissions and Economic Growth: the Mauritian Experience. Available from: http://www.csae.ox.ac.uk/conferences/2011-EDiA/papers/776-Seetanah.pdf
    [13] Casey G, Galor O (2017) Is faster economic growth compatible with reductions in carbon emissions? The role of diminished population growth. Environ Res Lett 12: 014003.
    [14] Chebbi H-E, Olarreaga M, Zitouna H (2009) Trade openness and CO2 emissions in Tunisia. In proceedings of Shocks vulnerability and therapy ERF 16th annual conference November 7–9 Cairo Egypt.
    [15] Dickey DA, Fuller WA (1979) Distribution of the Estimators for Autoregressive Time Series with a unit root. J Am Stat Assoc 74: 427–431.
    [16] Dogan E, Seker F (2016) The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries. Renew Sustain Energy Rev 60: 1074–1085. doi: 10.1016/j.rser.2016.02.006
    [17] Dogan E, Ozturk I (2017) The influence of renewable and non-renewable energy consumption and real income on CO2 emissions in the USA: evidence from structural break tests. Environ Sci Pollut Res 24: 10846–10854. doi: 10.1007/s11356-017-8786-y
    [18] Dong K, Sun R, Li H, et al. (2018) Does natural gas consumption mitigate CO2 emissions: Testing the environmental Kuznets curve hypothesis for 14 Asia-Pacific countries. Renew Sust Energy Rev 94: 419–429. doi: 10.1016/j.rser.2018.06.026
    [19] Fatawu NA, Allan A (2014) Managing the impacts of mining on Ghana's water resources from a legal perspective. JENRM I: 156–165.
    [20] Grossman GM, Krueger AB (1993) Pollution and growth: what do we know? In: Goldin, I., Winters, L. (Eds.), The Economics of Sustainable Development, MIT Press, Cambridge, MA.
    [21] Hilson G (2002) The environmental impact of small-scale gold mining in Ghana: identifying problems and possible solutions. Geogr J 168: 57–72. doi: 10.1111/1475-4959.00038
    [22] Hussen AM (2005) Principles of environmental economics and sustainability: an integrated and ecological approach, In: Bouvier, R. (Ed.), Air Pollution and Per Capita Income, Working Paper Series 84. Political Economy Research Institute (PERI) Routledge, New York.
    [23] Johansen S (1988) Statistical Analysis of Cointegrating Vectors. J Econ Dyn Control 12: 231–54. doi: 10.1016/0165-1889(88)90041-3
    [24] Jalil A, Feridun M (2011) The impact of growth, energy and financial development on the environment in China: a cointegration analysis. Energy Econ 33: 284–291. doi: 10.1016/j.eneco.2010.10.003
    [25] Jebli MB, Belloumi M (2017) Investigation of the causal relationships between combustible renewables and waste consumption and CO2 emissions in the case of Tunisian maritime and rail transport. Renew Sust Energy Rev 71: 820–829. doi: 10.1016/j.rser.2016.12.108
    [26] Johansen S, Juselius K (1990) Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money. Oxf Bull Econ Stat 52: 169–210.
    [27] Kwakwa PA, Adu G (2016) Effects of income, energy consumption, and trade openness on carbon emissions in sub-Saharan Africa. J Energy Dev 41: 86–117.
    [28] Kwakwa PA, Alhassan H, Adu G (2018) Effect of natural resources extraction on energy consumption and carbon dioxide emission in Ghana. MPRA Paper No. 85401. https://mpra.ub.uni-muenchen.de/85401/
    [29] Kwakwa PA, Arku FS, Aboagye S (2014) Environmental degradation effect of agricultural and industrial growth in Ghana. J Rural Industrial Dev 2: 1–8.
    [30] M'raihi R, Mraihi T, Harizi R, et al. (2015) Carbon emissions growth and road freight: Analysis of the influencing factors in Tunisia. Transp Policy 42: 121–129. doi: 10.1016/j.tranpol.2015.05.018
    [31] Maji IK, Habibullah MS, Saari MY (2017) Financial development and sectoral CO2 emissions in Malaysia. Environ Sci Pollut Res 24: 7160–7176. doi: 10.1007/s11356-016-8326-1
    [32] Nassani AA, Aldakhil AM, Abro MMQ, et al. (2017) Environmental Kuznets curve among BRICS countries: spot lightening finance, transport, energy and growth factors. J Clean Prod 154: 474–487. doi: 10.1016/j.jclepro.2017.04.025
    [33] Onafowora O, Owoye O (2014) Bounds testing approach to analysis of the environment Kuznets curve hypothesis. Energy Econ 44: 47–62. doi: 10.1016/j.eneco.2014.03.025
    [34] O'Neill BC, Liddle B, Jiang L, et al. (2012) Demographic change and carbon dioxide emissions. Lancet 380: 157–64. doi: 10.1016/S0140-6736(12)60958-1
    [35] Park JY (1992) Canonical cointegrating regressions. Econometrica 60: 119–43. doi: 10.2307/2951679
    [36] Pal D, Mitra SK (2017) The environmental Kuznets curve for carbon dioxide in India and China: Growth and pollution at crossroad. J Policy Model 39: 371–385. doi: 10.1016/j.jpolmod.2017.03.005
    [37] Phillips PC, Perron P (1988) Testing for a unit root in time series regression. Biometrika 75: 335–346. doi: 10.1093/biomet/75.2.335
    [38] Raupach MR, Marland G, Ciais P, et al. (2007) Global and regional drivers of accelerating CO2 emissions. Proc Natl Acad Sci 104: 10288–93. doi: 10.1073/pnas.0700609104
    [39] Sadorsky P (2011) Financial development and energy consumption in central and eastern European frontier economies. Energy Policy 39: 999–1006. doi: 10.1016/j.enpol.2010.11.034
    [40] Shahbaz M, Lean HH, Shabbir MS (2012) Environmental Kuznets curve hypothesis in Pakistan: cointegration and Granger causality. Renew Sust Energy Rev 16: 2947–2953. doi: 10.1016/j.rser.2012.02.015
    [41] Sekrafi H, Sghaier A (2018) The effect of corruption on carbon dioxide emissions and energy consumption in Tunisia. PSU Res Rev 2: 81–95. doi: 10.1108/PRR-11-2016-0008
    [42] Sghari MBA, Hammami S (2016) Energy, pollution, and economic development in Tunisia. Energy Reports 2: 35–39. doi: 10.1016/j.egyr.2016.01.001
    [43] Shahbaz M, Ferrer R, Shahzad SJH, et al. (2018) Is the tourism-economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top 10 tourist destinations. Appl Econ 50: 2678–2697.
    [44] Shahbaz M, Khan S, Tahir MI (2013) The dynamic links between energy consumption, economic growth, financial development and trade in China: fresh evidence from multivariate framework analysis. Energy Econ 40: 8–21. doi: 10.1016/j.eneco.2013.06.006
    [45] Sinha A, Shahbaz M (2018) Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India. Renew Energy 119: 703–711. doi: 10.1016/j.renene.2017.12.058
    [46] Sinha A, Shahbaz M, Balsalobre D (2017) Exploring the relationship between energy usage segregation and environmental degradation in N-11 countries. J Clean Prod 168: 1217–1229. doi: 10.1016/j.jclepro.2017.09.071
    [47] Sinha A, Sen S (2016) Atmospheric consequences of trade and human development: A case of BRIC countries. Atmos Pollut Res 7: 980–989. doi: 10.1016/j.apr.2016.06.003
    [48] Tamazian A, Chousa JP, Vadlamannati KC (2009) Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries. Energy Policy 37: 246–253. doi: 10.1016/j.enpol.2008.08.025
    [49] Tiwari AK, Shahbaz M, Adnan Hye MQ et al. (2013) The environmental Kuznets curve and the role of coal consumption in India: cointegration and causality analysis in an open economy. Renew Sust Energy Rev 18: 519–527. doi: 10.1016/j.rser.2012.10.031
    [50] World Development Indicators (2017). Available from: http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators.
    [51] Wang SS, Zhou DQ, Zhou P, et al. (2011) CO2 emissions, energyconsumption and economic growth in China: a panel data analysis. Energy Policy 39: 4870–5. doi: 10.1016/j.enpol.2011.06.032
    [52] Xiong L, Qi S (2016) Financial development and carbon emissions in Chinese provinces: a spatial panel data analysis. Singap Econ Rev 10: 11–42.
    [53] Yeh J-C, Liao C-H (2017) Impact of population and economic growth on carbon emissions in Taiwan using an analytic tool STIRPAT. Sust Environ Res 27: 41–48.
    [54] Ziaei SM (2015) Effects of financial development indicators on energy consumption and CO2 emissions of European, East Asian and Oceania countries. Renew Sustain Energy Rev 42: 752–759. doi: 10.1016/j.rser.2014.10.085
    [55] Zivot E, Andrews DWK (1992) Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis. J Bus Econ Stat 10: 251–270.
  • Reader Comments
  • © 2018 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
通讯作者: 陈斌, bchen63@163.com
  • 1. 

    沈阳化工大学材料科学与工程学院 沈阳 110142

  1. 本站搜索
  2. 百度学术搜索
  3. 万方数据库搜索
  4. CNKI搜索
Quantitative Finance and Economics
3.2 0.3

Metrics

Article views(5808) PDF downloads(981) Cited by(40)

Preview PDF
Download XML
Export Citation
Article outline

Figures and Tables

Tables(10)

Other Articles By Authors

Related pages

Tools

/

DownLoad:  Full-Size Img  PowerPoint
Return
Return

Catalog