Sustainable economic growth: An empirical study for the Asia-pacific economic cooperation forum

Abstract:

This study analyses the validity of environmental Kuznets curve (EKC) hypothesis for the Asia-pacific Economic Cooperation Forum (APEC), within the period 1992-2012. Three econometric models are performed, which use different environmental quality indicators as dependent variable. Model 1: Uses carbon dioxide (CO2) total emissions in APEC, Model 2: Uses CO2 emissions generated from coal consumption, and Model 3: Uses CO2 emissions generate from petroleum consumption. Pedroni and Kao co-integration approach are applied for testing long-run relationship between variables for each model. Fully modified ordinary least squares method is employed for determining the elasticities of the long-run relationships. The analysis finds that an EKC is held under Model 1, and 3, but for Model 2 the relation between the variables does not show an inverted U shape behavior. Additionally descriptive analysis and Model 2 suggest that coal consumption has been increasing in last years, because of the effect in CO2 emissions; even more in this specific indicator, economic activity is leading to an unsustainable growth scenario in APEC.

Año de publicación:

2016

Keywords:

• economic growth
• Environmental Kuznets Curve
• Carbon dioxide emissions

Fuente:

scopus