Abstract
This study aims to test the EKC (Environmental Kuznets Curve) hypothesis for the ten states, having the highest levels of carbon dioxide emissions in the USA, through the independent variables of real GDP, population, and renewable energy and fossil energy consumptions. To this aim, the panel estimation method with cross-sectional dependence is applied to data from 1980 to 2015. The empirical findings of the study indicate that the EKC (inverted U-shaped) hypothesis is valid only for Florida, Illinois, Michigan, New York, and Ohio. Interestingly, the negative impacts of fossil energy consumption on CO2 emission levels in Texas are not detected statistically although this state is the leading oil-producing state. Furthermore, the positive impacts of renewable energy consumption in Florida, officially known as “Sunshine State”, are considerably low when compared with the other states.
Similar content being viewed by others
References
Aldy JE (2005) An environmental Kuznets curve analysis of US state-level carbon dioxide emissions. J Environ Dev 14(1):48–72
Alshehry AS, Belloumi M (2015) Energy consumption, carbon dioxide emissions and economic growth: the case of Saudi Arabia. Renew Sust Energ Rev 41:237–247
Andreoni J, Levinson A (2001) The simple analytics of the environmental Kuznets curve. J Public Econ 80:269–286
Ang JB (2007) CO2 emissions, energy consumption, and output in France. Energy Policy 35(10):4772–4778
Apergis N, Christou C, Gupta R (2017) Are there environmental Kuznets curves for US state-level CO2 emissions? Renew Sust Energ Rev 69:551–558
Atasoy BS (2017) Testing the environmental Kuznets curve hypothesis across the US: evidence from panel mean group estimators. Renew Sust Energ Rev 77:731–747
Beckerman, W., 1992. Economic growth and the environment: whose growth? Whose environment?
Breusch TS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47:239–253
Census (2018) US Census Bureau. https://www.census.gov/data.html
De-Vita G, Katircioglu S, Altinay L, Fethi S, Mercan M (2015) Revisiting the environmental Kuznets curve hypothesis in a tourism development context. Environ Sci Pollut Res 22(21):16652–16663
Dogan E, Turkekul B (2016) CO 2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environ Sci Pollut Res 23(2):1203–1213
Dogan E (2017) CO2 emissions, real GDP, renewable energy and tourism: evidence from panel of the Most-visited countries. Statistika 97(3):63–76
EIA (2018) U.S. Energy Information Administration. https://www.eia.gov/
Farhani S, Mrizak S, Chaibi A, & Rault C (2014) The environmental Kuznets curve and sustainability: A panel data analysis. Energy Policy, 71, 189–198
FED (Federal Reserve Bank of St. Louis) (2017) Economic research. https://research.stlouisfed.org/Farhani
Chaibi SA, Rault C (2014) CO2 emissions, output, energy consumption, and trade in Tunisia. Econ Model 38:426–434
Halicioglu F (2009) An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37(3):1156–1164
Hanif P, Gago-de-Santos (2017) The importance of population control and macroeconomic stability to reducing environmental degradation: an empirical test of the environmental Kuznets curve for developing countries. Environ Dev 23(3):1–9
Hausman JA (1978) Specification tests in econometrics. Econometrica 46(6):1251–1271
Isik, C. (2010) Natural gas consumption and economic growth in Turkey: a bound test approach. Energy Systems, 1(4), 441–456
Isik C, & Shahbaz M (2015) Energy consumption and economic growth: a panel data aproach to OECD countries. International Journal of Energy Science, 5(1). https://doi.org/10.12783/ijes.2015.0501.01
Isik C, Dogru T, Turk ES (2018) A nexus of linear and non-linear relationships between tourism demand, renewable energy consumption, and economic growth: theory and evidence. Int J Tour Res 20(1):38–49
Isik C, Kasımatı E, Ongan S (2017) Analyzing the causalities between economic growth, financial development, international trade, tourism expenditure and/on the CO2 emissions in Greece. Energy Sources Part B 12(7):665–673
Isik C, Radulescu M (2017) Investigation of the relationship between renewable energy, tourism receipts and economic growth in Europe. Statistika: Statistics and Economy. Journal 97(2):85–94
Jalil A, Mahmud SF (2009) Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy 37(12):5167–5172
Jayanthakumaran K, Verma R, Liu Y (2012) CO2 emissions, energy consumption, trade and income: a comparative analysis of China and India. Energy Policy 42:450–460
Kasman A, Duman Y (2015) CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: a panel data analysis. Econ Model 44:97–103
Katircioglu ST (2014a) International tourism, energy consumption, and environmental pollution: the case of Turkey. Renew Sust Energ Rev 36(2014):180–187
Katircioglu ST (2014b) Estimating higher education induced energy consumption: the case of northern Cyprus. Energy 66:831–838
Lee JW, Brahmasrene T (2013) Investigating the influence of tourism on economic growth and carbon emissions: evidence from panel analysis of the European Union. Tour Manag 38:69–76
León CJ, Arana JE, Hernández AA (2014) CO2 Emissions and tourism in developed and less developed countries. Appl Econ Lett 21(16):1169–1173
Magnani E (2001) The environmental Kuznets curve: development path or policy result? Environ Model Softw 16:157–166
McConnell KE (1997) Income and the demand for environmental quality. Environ Dev Econ 2:383–399
Omri A, Daly S, Rault C, Chaibi A (2015) Financial development, environmental quality, trade and economic growth: what causes what in MENA countries. Energy Econ 48:242–252
Orubu CO, Omotor DG (2011) Environmental quality and economic growth: searching for environmental Kuznets curves for air and water pollutants in Africa. Energy Policy 39(7):4178–4188
Ozturk I, Acaravci A (2010) CO2 emissions, energy consumption and economic growth in Turkey. Renew Sust Energ Rev 14(9):3220–3225
Panayotou T (1993) Empirical tests and policy analysis of environmental degradation at different stages of economic development. In: Working paper WP238. Technology and Employment Programme, International Labour Office, Geneva
Pablo-Romero MDP, De Jesús J (2016) Economic growth and energy consumption: the energy-environmental Kuznets curve for Latin America and the Caribbean. Renew Sust Energ Rev 60:1343–1350
Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16(3):289–326
Pesaran MH (2007) A simple panel unit root test in the presence of cross-section dependence. J Appl Econ 22(2):265–312
Rafiq S, Salim R, Nielsen I (2016) Urbanization, openness, emissions, and energy intensity: a study of increasingly urbanized emerging economies. Energy Econ 56:20–28
Soytas U, Sari R, Ewing BT (2007) Energy consumption, income, and carbon emissions in the United States. Ecol Econ 62(3):482–489
Soytas U, Sari R (2009) Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecol Econ 68(6):1667–1675
Stern DI, Common MS, Barbier EB (1996) Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development. World Dev 24:1151–1160
Stern DI (2004) The rise and fall of the environmental Kuznets curve. World Dev 32(8):1419–1439
Stokey NL (1998) Are there limits to growth? Int Econ Rev 39(1):1–31
Suri V, Chapman D (1998) Economic growth, trade and energy: implications for the environmental Kuznets curve. Ecol Econ 25(2):195–208
Author information
Authors and Affiliations
Corresponding author
Additional information
Responsible editor: Nicholas Apergis
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendix
Appendix
Rights and permissions
About this article
Cite this article
Işık, C., Ongan, S. & Özdemir, D. Testing the EKC hypothesis for ten US states: an application of heterogeneous panel estimation method. Environ Sci Pollut Res 26, 10846–10853 (2019). https://doi.org/10.1007/s11356-019-04514-6
Received:
Accepted:
Published:
Issue date:
DOI: https://doi.org/10.1007/s11356-019-04514-6
Keywords
- CO2 emissions
- Fossil energy
- Renewable energy
- Population and cross-sectional dependence
- Environmental Kuznets Curve (EKC)
- GDP