Research & Development

Submit a Manuscript

Publishing with us to make your research visible to the widest possible audience.

Propose a Special Issue

Building a community of authors and readers to discuss the latest research and develop new ideas.

Understanding the Environmental Kuznets Curve Hypothesis: Empirical Evidence from Bangladesh

In the first quarter of the twenty-first century, the most substantial global concern is environmental contamination, and it has gained the prioritization of both the national and international community. Keeping in mind this crucial fact, this study conducted different statistical and econometrical methods to identify whether the gross national income of the country has a significant impact on electricity production from nonrenewable sources and different air pollutants like carbon dioxide, nitrous oxide, and methane emissions. Besides, the primary objective of this research was to analyze whether the environmental Kuznets curve hypothesis holds for the examined variables. After analyzing different statistical properties of the variables, this study came to the conclusion that the environmental Kuznets curve hypothesis holds for gross national income and carbon dioxide emission in Bangladesh in the short run as well as the long run. This study comes to this conclusion based on the findings of ordinary least square estimations; ARDL bound tests, short run causality analysis, the Error Correction Model, and other pre-diagnostic and post-diagnostic tests that have been employed in the structural model. Moreover, this study wants to demonstrate that the outline of gross national income and carbon dioxide emissions is in its initial stage of development and will increase up to the optimal peak. The compositional effect will then force the emission to decrease, and the environmental quality will be restored in the long run.

Environmental Kuznets Curve Hypothesis, Carbon Dioxide Emission in Bangladesh, Gross National Income in Bangladesh, Auto Regressive Distributed Lag Model, Granger Causality, Error Correction Model

APA Style

Ashique Mahmud, Md. Ataul Gani Osmani, Shoria Sharmin, Swarajit Sarker, Neropoma dey Shampa. (2023). Understanding the Environmental Kuznets Curve Hypothesis: Empirical Evidence from Bangladesh. Research & Development, 4(2), 44-52. https://doi.org/10.11648/j.rd.20230402.12

ACS Style

Ashique Mahmud; Md. Ataul Gani Osmani; Shoria Sharmin; Swarajit Sarker; Neropoma dey Shampa. Understanding the Environmental Kuznets Curve Hypothesis: Empirical Evidence from Bangladesh. Res. Dev. 2023, 4(2), 44-52. doi: 10.11648/j.rd.20230402.12

AMA Style

Ashique Mahmud, Md. Ataul Gani Osmani, Shoria Sharmin, Swarajit Sarker, Neropoma dey Shampa. Understanding the Environmental Kuznets Curve Hypothesis: Empirical Evidence from Bangladesh. Res Dev. 2023;4(2):44-52. doi: 10.11648/j.rd.20230402.12

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

1. Alam, J. (2014). On the Relationship between Economic Growth and CO2. IOSR Journal of Economics and Finance, 5 (6), 36-41.
2. Bikash Chandra Ghosh, K. J. (2014). Economic growth, CO2 emissions and energy consumption: The case of Bangladesh. International Journal of Business and Economics Research, 3 (6), 220-227. doi: 10.11648/j.ijber.20140306.13.
3. David A. Dickey, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 427-431.
4. David I. Stern, M. S. (1996). Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development. World Development, 24 (7), 1151-1160. doi: https://doi.org/10.1016/0305-750X(96)00032-0
5. Faridul Islam, M. S. (2013, December). Is There an Environmental Kuznets Curve for Bangladesh? Evidence from ARDL Bounds Testing Approach. Bangladesh Institute of Development Studies, 36 (4), 1-23. Retrieved from https://www.jstor.org/stable/44730024
6. Gene M. Grossman, A. K. (1995). Economic Growth and the Environment. The Quarterly Journal of Economics, 110 (2), 353-377.
7. Husain, H. (2016). Determinants of Environmental Degradation and Empirical Investigation of Kuznets Curve: A Comparative Study of India and Bangladesh. Asian Journal of Empirical Research, 6 (5). doi: https://doi.org/10.18488/journal.1007/2016.6.5/1007.5.131.141.
8. Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45 (1), 1-28. Retrieved from https://www.jstor.org/stable/1811581
9. Wen Jun, N. M. (2021). Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission. Energy policy, 153. doi: https://doi.org/10.1016/j.enpol.2021.112230 (29).
10. M. Hashem Pesaran, Y. S. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16 (3), 289-326.
11. Md Arif Hasan, K. M. (2021, August). Nexus of economic growth, energy consumption, FDI and emissions: a tale of Bangladesh. Environment, Development and Sustainability. doi: https://doi.org/10.1007/s10668-021-01704-6
12. Md. Danesh Miah, M. F. (2010, August). Global observation of EKC hypothesis for CO2, SOx and NOx emission: A policy understanding for climate change mitigation in Bangladesh. Energy Policy, 38 (8). doi: https://doi.org/10.1016/j.enpol.2010.04.022
13. Mohammad Jahangir Alam, I. A. (2012, March). Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis. Energy Policy, 45, 217-225. doi: https://doi.org/10.1016/j.enpol.2012.02.022
14. Mohammad Mahbubur Rahman, A. A. (2021). Environmental Kuznets Curve (EKC) for Bangladesh: Evidence from Fully Modified OLS Approach. Journal of Emerging Economies and Policy, 6 (2), 5 - 14. Retrieved from https://dergipark.org.tr/en/pub/joeep/issue/60720/888418
15. Muntasir Murshed, J. F. (2020). The Environmental Kuznets curve hypothesis for deforestation in Bangladesh: An ARDL analysis with multiple structural breaks. Energy, Ecology and Environmen, 6, 111–132. doi: https://doi.org/10.1007/s40974-020-00188-w
16. Muntasir Murshed, R. A. (2021). The environmental Kuznets curve hypothesis for Bangladesh: the importance of natural gas, liquefied petroleum gas, and hydropower consumption. Environmental Science and Pollution Research volume, 28, 17208–17227. doi: https://doi.org/10.1007/s11356-020-11976-6
17. Nahid Sultana, M. M. (2021, August). Environmental kuznets curve and causal links between environmental degradation and selected socioeconomic indicators in Bangladesh. doi: https://doi.org/10.1007/s10668-021-01665-w
18. P. K. Halder, N. P. (2015, November). Energy scarcity and potential of renewable energy in Bangladesh. Renewable and Sustainable Energy Reviews, 51, 1636-1649. doi: https://doi.org/10.1016/j.rser.2015.07.069
19. Panayotou T, I. N. (1999). Unveiling the income-environment relationship: an exploration into the determinants of environmental quality. Harvard Institute for International Development Discussion Paper No: Harvard University., (p. 701). Retrieved from https://www.researchgate.net/profile/Nazrul-Islam-8/publication/5065874_Unveiling_the_Income-Environment_Relationship_An_Exploration_into_the_Determinants_of_Environmental_Quality/links/573242a408ae298602da3537/Unveiling-the-Income-Environment-Relationshi
20. Panayotou, T. (1993). Empirical Tests and Policy Analysis of Environmental Degradation at Different Stages of Economic Development. ILO, Technology and Employment Programme,. Geneva: International Labor Office.
21. Taylor, M. S. (2005). Unbundling the Pollution Haven Hypothesis. Advances in Economic Analysis & Policy, 4. doi: https://doi.org/10.2202/1538-0637.1408
22. Peter C. B. Phillips, P. P. (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75 (2), 335-346.
23. Sakib Bin Amin, S. S. (2012, July). Causal Relationship among Energy Use, CO2 Emissions and Economic Growth in Bangladesh: An Empirical Study. World Journal of Social Sciences, 2 (4), 273 – 290. Retrieved from https://www.researchgate.net/profile/Sakib-Amin/publication/265741770_Causal_Relationship_among_Energy_Use_CO_2_Emissions_and_Economic_Growth_in_Bangladesh_An_Empirical_Study/links/57cedb2608ae83b374622d48/Causal-Relationship-among-Energy-Use-CO-2-Emissio
24. Shalina Akther, M. D. (2010). Driving forces for fuelwood choice of households in developing countries: environmental implications for Bangladesh. International Journal of Biodiversity Science, Ecosystem Services & Management, 6 (1-2). doi: https://doi.org/10.1080/21513732.2010.505011
25. Sisay Demissew Beyene, B. K. (2020). Testing the environmental Kuznets curve hypothesis: an. INTERNATIONAL JOURNAL OF ENVIRONMENTAL STUDIES, 77 (4), 636–654. doi: https://doi.org/10.1080/00207233.2019.1695445
26. Stern, D. I. (2018). The Environmental Kuznets Curve. Earth Systems and Environmental Sciences. doi: h ttps://doi.org/10.1016/B978-0-12-409548-9.09278-2