Revisiting and Validating Environmental Kuznets Curve (EKC) in Some Selected Developed Countries in Europe

Abstract

The Environmental Kuznets Curve (EKC) explores the relationship between economic growth and environmental degradation, proposing an inverted U-shaped curve. It says that the pollution initially increases with the rise in the income levels but declines after a surpassing a certain economic threshold. This study validates that EKC hypothesis in selected developed European countries focusing carbon dioxide (CO₂) and nitrogen dioxide (NO₂) emissions concerning Gross domestic product per capita (GDPPC). The secondary data were used from World Bank for the year 1990 to 2020. The analysis highlights that the existence of inverted U-shaped curve in some nations Austria, Belgium, and Denmark, where emissions rise during early stages of economic growth but eventually decline. However, the findings for NO2 emissions are mixed, with some countries exhibiting weak or no EKC patterns. This divergence is attributed to differences in industrial structures, energy efficiency, and the adoption of clean technologies. The study highlight’s role of regulatory framework, public awareness and investment in achieving sustainable development. Countries with robust environmental policies and higher investments in green technologies, such as Denmark and Sweden, demonstrate more pronounced EKC trends. Conversely, nations reliant on fossil fuels and less stringent environmental policies exhibit weaker results. The outcomes highlight how important it is to balance the economic growth and economic sustainability in industrial countries through environmental policies, investments in cleaner technologies and sustainable conduct.