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What is EKC

Handbook of Research on Sustainable Supply Chain Management for the Global Economy
Environmental Kuznets curve.
Published in Chapter:
The Negative Effects of Carbon Emission on FDI: A Comparative Analysis Between E7 and G7 Countries
Serhat Yüksel (Istanbul Medipol University, Turkey), Hasan Dinçer (Istanbul Medipol University, Turkey), Hüsne Karakuş (Istanbul Medipol University, Turkey), and Gözde Gülseven Ubay (Istanbul Medipol University, Turkey)
DOI: 10.4018/978-1-7998-4601-7.ch002
Abstract
This study aims to understand the negative impacts of carbon emission on the foreign direct investments. For this purpose, a comparative analysis is performed for both E7 and G7 countries. In the analysis process, Pedroni panel cointegration (PPC), Kao panel cointegration (KPC), and Dumitrescu Hurlin panel causality (DHPC) analyses are taken into consideration. The findings indicate that carbon emission has a negative influence on foreign direct investments for both country groups. Nonetheless, this relationship is stronger for G7 economies. It is also identified that there is no causality relationship between these variables. It is recommended that the countries should generate appropriate policies to minimize carbon emission problem. Within this context, new tax can be implemented for the companies that lead to high carbon emission. Additionally, governments can give incentives to the projects that aim to decrease carbon emission. In this scope, decreasing tax ratio and providing a technical support can be given as examples.
Full Text Chapter Download: US $37.50 Add to Cart
More Results
A Comparative Study on World-Wide Carbon Emission Convergence: An Empirical Analysis
The inverted U-shaped relationship between per capita income and environmental degradation is known as Environmental Kuznets Curve (EKC), named after the famous Kuznets Curve where Simon Kuznets (1955) AU52: The in-text citation "Simon Kuznets (1955)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. has first pointed out that income inequality in a country at first rises, reaches a peak and then tends to fall along with the rise in per capita income by ‘trickle down’ effect. EKC indicates that pollutant emissions increase with income in lower income countries but decrease with income in higher income countries. Panayotou first used the term Environmental Kuznets Curve to describe the inverse relationship between pollution and economic development. Grossman and Krueger (1994) AU53: The in-text citation "Grossman and Krueger (1994)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. have illustrated, for a broad set of environmental indicators, the existence of this hypothesized relationship.
Full Text Chapter Download: US $37.50 Add to Cart
Full Text Chapter Download: US $37.50 Add to Cart
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