Retesting the EKC hypothesis through transmission of the ARMEY curve model: an alternative composite model approach with theory and policy implications for NAFTA countries

Ongan S., IŞIK C., BULUT Ü., Karakaya S., Alvarado R., Irfan M., ...Daha Fazla

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, cilt.29, sa.31, ss.46587-46599, 2022 (SCI-Expanded) identifier identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 29 Sayı: 31
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1007/s11356-022-19106-0
  • Dergi Adı: ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.46587-46599
  • Anahtar Kelimeler: ARMEY curve hypothesis, EKC hypothesis, Transmission mechanism, NAFTA countries, ENVIRONMENTAL KUZNETS CURVE, RENEWABLE ENERGY-CONSUMPTION, ECONOMIC-GROWTH, GOVERNMENT SIZE, CO2 EMISSIONS, PANEL-DATA, CARBON EMISSIONS, WASTE GENERATION, EXCHANGE-RATES, TOURISM
  • Anadolu Üniversitesi Adresli: Evet

Özet

We investigate the validity of the environmental Kuznets curve (EKC) hypothesis for the NAFTA countries. In this investigation, we approach this hypothesis from a different methodology and propose employing the ARMEY curve hypothesis since the mathematical-functional propositions of both hypotheses were constructed on the same inverted U-shaped relationships. Thus, for the first time, it can be interpreted that the EKC hypothesis is empirically tested through a transmission mechanism of the ARMEY curve hypothesis in a single composite model. Therefore, this approach makes our study different from all empirical studies in the relevant literature. We apply the Augmented Mean Group (AMG) estimator to this aim. Empirical findings indicate that the ARMEY curve hypothesis was verified only for the USA. However, this new approach proposed in this study cannot test the EKC hypothesis through the ARMEY curve model for any NAFTA country since this approach requires verification of the ARMEY curve hypothesis and a significant composite model for the same NAFTA country. If our composite model was significant, it might make it possible to numerically determine a maximum real GDP per capita level that would minimize or maximize CO2 emission levels for the USA. Therefore, this study introduces-proposes this new methodology as an alternative way of testing the EKC hypothesis in the relevant literature for future empirical studies.