Environmental sustainability and economic growth in greenland: Testing the environmental kuznets curve

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Abstract

The environmental Kuznets curve (EKC) hypothesis assumes there is an inverted U-shape relationship between pollution and income per capita, implying an improvement in environmental quality when a growing economy reaches a high level of economic development. This study evaluated empirically the existence of the environmental Kuznets curve in Greenland for the period 1970- 2018. Using an autoregressive distributed lag (ARDL) approach, the results show evidence of a Ushaped EKC in Greenland instead of the hypothesized inverted U-shape. The findings indicate that Greenland had initially experienced a decoupling transition during an early development stage associated with structural conditions of a small subsistence economy. However, once the country began to expand its industry, the trend began to reverse, creating a positive and significant relationship between CO2 emissions and GDP per capita that are potentially detrimental to the Arctic natural environment.

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Arnaut, J., & Lidman, J. (2021). Environmental sustainability and economic growth in greenland: Testing the environmental kuznets curve. Sustainability (Switzerland), 13(3), 1–14. https://doi.org/10.3390/su13031228

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