Environmental Degradation, Energy consumption, Population Density and Economic Development in Lebanon: A time series Analysis (1971-2014)

Audi, Marc and Ali, Amjad (2016): Environmental Degradation, Energy consumption, Population Density and Economic Development in Lebanon: A time series Analysis (1971-2014).

Abstract

This study has investigated the impact of energy consumption, financial development, economic development, population density and secondary school education on environmental degradation in Lebanon over the period of 1974 to 2014. ADF unit root test and ARDL bound test method of co-integration have been used for empirical analysis. The results show that energy consumption, financial development and population density have positive and significant relationship with environmental degradation in Lebanon. The results show that economic development has positive but insignificant relationship with environmental degradation. The results show that secondary school education has negative and significant relationship with environmental degradation in Lebanon. The estimated results show that for reducing environmental degradation, the Lebanese government should increase energy efficient methods of production as well as increase the educational level.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic development, population density, environmental degradation
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth

References

Brajer, V., Mead, R. W., & Xiao, F. (2011). Searching for an Environmental Kuznets Curve in China's air pollution. China Economic Review, 22(3), 383-397.

Brown, R. L., Durbin, J., & Evans, J. M. (1975). Techniques for testing the constancy of regression relationships over time. Journal of the Royal Statistical Society. Series B (Methodological), 149-192.

Carson R.T, Jeon Y., and McCubbin D. R., (1997). The relationship between air pollution emissions and income: US data. Environment Development Economics, 2, 433–50.

De Bruyn, S. M., van den Bergh, J. C., & Opschoor, J. B. (1998). Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves. Ecological Economics, 25(2), 161-175.

Dijkgraaf, E., & Vollebergh, H. R. (2001). A note on testing for environmental Kuznets curves with panel data. Fondazione Eni Enrico Mattei.

Grossman G. M and Krueger A. B (1995). Economic growth and the environment. Quarterly Journal of Economics,110(2), 353–78.

Hansen, B. E. (1996). Inference when a nuisance parameter is not identified under the null hypothesis. Econometrica: Journal of the econometric society, 413-430.

Halkos, G., &Tzeremes, N. (2011). Kuznets curve and environmental performance: evidence from China.Online at http://mpra.ub.uni-muenchen.de/34312/ MPRA Paper No. 34312, posted 25. October 2011 / 21:18

Holtz-Eakin D and Selden T. M. (1995). Stocking the fires? CO2 emission and economic growth. Journal of Public Economics, 57(1), 85–101.

I. P. C. C. (2007). IPCC. Aspectos Regionais e Setoriais da Contribuição do Grupo de Trabalho II ao 4º Relatório de Avaliação “Mudança Climática 2007” do IPCC.

Jaekyu L. (1997). Economic growth and environment: some empirical evidences from South Korea. School of Economics, University of New South Wales.

Johansson, P. O., & Kriström, B. (2007). On a clear day you might see an environmental Kuznets curve. Environmental and Resource Economics, 37(1), 77-90.

Junyi, S. (2006). A simultaneous estimation of Environmental Kuznets Curve: Evidence from China. China Economic Review, 17, 383–394

Kaufmann R. K, Davidsdottir, B., Garnham, S., and Pauly, P. (1998). The determinants of atmospheric SO2 concentrations: reconsidering the environmental Kuznets curve. Ecological Economics, 25(2), 209–20.

Kaygusuz, K. (2009). Energy and environmental issues relating to greenhouse gas emissions for sustainable development in Turkey. Renewable and Sustainable Energy Reviews, 13(1), 253-270.

Kraft, J., & Kraft, A. (1978). Relationship between energy and GNP. J. Energy Dev.;(United States), 3(2).

Li, J., & Li, Z. (2011). A causality analysis of coal consumption and economic growth for China and India. Natural Resources, 2(1), 54-60.

Lise, W. (2006). Decomposition of CO 2 emissions over 1980–2003 in Turkey. Energy Policy, 34(14), 1841-1852.

McConnell K. E., (1997). Income and the demand for environmental quality. Environment Development Economics, 2, 383–99.

Moomaw W. R., and Unruh G. C., (1997). Are environmental Kuznets curves misleading us? The case of CO2 emissions. Environment Development Economics. 2, 451–63.

Nelson, C. R., & Plosser, C. R. (1982). Trends and random walks in macroeconmic time series: some evidence and implications. Journal of monetary economics, 10(2), 139-162.

Perman, R., and David, I. S. (2003). Evidence from panel unit root and cointegration tests that the environmental Kuznets Curve does not exist. The Australian Journal of Agriculture and Resource Economics, 47(3), 325–47.

Pesaran, M. H., & Pesaran, B. (1997). Working with Microfit 4.0: interactive econometric analysis;[Windows version]. Oxford University Press.

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of applied econometrics, 16(3), 289-326.

Rothman, D. S., (1998). Environmental Kuznets curve – real progress or passing the buck? a case for consumption-based approaches. Ecological Economics, 25(2). 177–94.

Shafik, N. (1994). Economic development and environmental quality: an econometric analysis. Oxford, Economics Paperp, 46, 757–73.

Spangenberg, J. H. (2001). The environmental Kuznets curve: a methodological artefact? Population and Environment, 23(2), 175–91.

Suri, V. and Chapman, D. (1998). Economic growth, trade and energy implications for the environmental Kuznets curve. Ecological Economics, 25(2), 195–208.

UN Framework Convention on Climate Change. (1997).

Vehmas, J., Luukkanen, J., and Kaivo-oja, J. (2007). Linking analyses and environmental Kuznets curves for aggregated material flows in the EU. Journal of Cleaner Production, 15(17), 1662–73.

Winkler, H., Spalding-Fecher, R., & Tyani, L. (2002). Comparing developing countries under potential carbon allocation schemes. Climate policy, 2(4), 303-318.