Munich Personal RePEc Archive

Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries

Sinha, Avik and Shahbaz, Muhammad and Balsalobre, Daniel (2017): Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries.

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Abstract

Numerous studies regarding the economic growth-environmental pollution link have struggled to determine the effects of various forms of energy consumption on environmental degradation, particularly in the context of emerging economies. This study examines the environmental Kuznets curve (EKC) for CO2 emissions in N-11 countries during 1990-2014 by segregating three forms of energy consumption (renewable, biomass and non-renewable). Urbanization and trade openness are additional explanatory variables that are used in the empirical framework. Using the Generalized Moments Method (GMM), the empirical evidence confirms the presence of an N-shaped relationship between economic growth and environmental degradation for N-11 countries. This study analyzed the interaction effects among trade openness, biomass consumption and economic growth; these interactions had a negative impact on CO2 emissions levels of N-11 countries. Suitable policy recommendations have been provided based on the detailed results.

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