Investigating the validity of the environmental Kuznets curve hypothesis in Cambodia

Abstract

This study investigates whether better governess and corruption control help to form the inverted U-shaped relationship between income and pollution in Cambodia for the period of 1996-2012. The outcome from the Generalized Method of Moments and the Two-stage Least Squares revealed that GDP, urbanization, energy consumption, and trade openness increase CO 2 emission while the control of corruption and governess can reduce CO 2 emission. It is fundamental to note that the environmental Kuznets curve hypothesis was not confirmed in Cambodia. Based on the retrieved results, we recommend for urban planners to utilize policies that will allow them to improve urban planning by controlling sewage, industrial waste, and solid waste which are some of the major causes for the environmental deterioration in Cambodia's major cities. It is also crucial to implement pollution and trade-related actions and strategies to increase the environmental protection from trade. Additionally, it is important for Cambodia to increase the corruption control as this step will strengthen the environmental regulations which will reduce pollution. Finally, a better governess is also important to improve the quality of the environment.