Title: Environmental Kuznets curve: an empirical analysis for carbon dioxide emissions in Egypt

Authors: Dalia M. Ibrahiem

Addresses: Faculty of Economics and Political Science, Cairo University, Giza Governorate, Egypt

Abstract: The aim of the study is to address the relationship between environmental degradation and economic growth in Egypt. In this regard, the study examines the relationship between carbon dioxide emissions (CO₂), economic growth (real GDP per capita), energy consumption, trade openness and population density employing Johansen cointegration analysis over time series data of 1980-2010. Specifically, the study investigates the existence of Environmental Kuznets Curve (EKC) hypothesis, the relationship between CO₂ emissions and real GDP per capita. The results of the study confirm the existence of long-run relationship between the variables. In addition, the study does not support the existence of EKC either in the short or the long run. Also, it is concluded that energy consumption is correlated positively with CO₂ emissions, while trade openness and population are correlated negatively with it. Granger causality test indicates bilateral causality between economic growth and CO₂ emissions and unilateral causality running from economic growth to energy consumption and from trade openness to economic growth. Important policy implications will be recommended based on these results.

Keywords: environmental Kuznets curve; EKC; carbon dioxide; CO2; carbon emissions; economic growth; trade openness; energy consumption; population density; cointegration; Egypt; environmental degradation.

DOI: 10.1504/IJGE.2016.080554

International Journal of Green Economics, 2016 Vol.10 No.2, pp.136 - 150

Received: 12 Mar 2016
Accepted: 20 Sep 2016
Published online: 29 Nov 2016 *

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