Bounds Testing Approach to Analyze the Existence of an Environmental Kuznets Curve in Ecuador

Authors

  • Manuel A. Zambrano-Monserrate Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador
  • Freddy F. García–Albán Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador
  • Kliffer A. Henk-Vera Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador

Abstract

This paper provides empirical evidence of a long-run environmental Kuznets curve (EKC) for Ecuador from 1971 to 2011. Using the autoregressive distributed lag bounds testing approach, we do not just estimate the effect of economic growth on CO2 emissions but also the effect of energy consumption on this one. The effects of all variables have the expected signs. In addition, we test for Granger causality among the variables using an error correction model. Only GDP granger causes energy consumption in the short-run. The results have several policy implications that are consistent with the recent environmental policy of the government.Keywords: EKC, Ecuador, Energy Matrix.JEL Classifications: C32, O52, Q43, Q50

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Published

2016-04-17

How to Cite

Zambrano-Monserrate, M. A., García–Albán, F. F., & Henk-Vera, K. A. (2016). Bounds Testing Approach to Analyze the Existence of an Environmental Kuznets Curve in Ecuador. International Journal of Energy Economics and Policy, 6(2), 159–166. Retrieved from https://econjournals.com/index.php/ijeep/article/view/1831

Issue

Vol. 6 No. 2 (2016)

Section

Articles

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