In search of the environmental Kuznets curve in Canada: where is the inverted U curve? Online publication date: Wed, 02-Jan-2019
by Anupam Das
International Journal of Global Energy Issues (IJGEI), Vol. 41, No. 5/6, 2018
Abstract: Using the industry-level panel data from 1990 to 2014, this paper examines the environmental Kuznets curve (EKC) hypothesis for Canada. I use the Pooled Mean Group (PMG) technique to identify a common-across-industries long-run coefficient for the emission effect of industrial GDP while allowing for different short-run dynamics for each industry. Therefore, the estimates avoid producing potentially biased results that may arise from business-cycle and industry-specific effects. Three different pollutants, carbon dioxide (CO2), nitrous oxide (N2O), and methane (CH4) are used as emission indicators to examine the effects of economic activity on different types of pollutants. Contrary to the conventional view, this paper finds the evidence of U-shaped EKCs irrespective of the type of pollutants used in the estimation. Results from this investigation will help policymakers understand whether perpetual economic growth can be ensured in Canada without increasing emissions, and help them formulate appropriate policies for sustainable growth of the country.
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