Abstract:

Purpose: In this study, it is aimed to test the Environmental Kuznets Curve hypothesis within the scope of the STIRPAT environmental model for countries with different income levels. Design/Methodology: In the study, the relationship between carbon emissions (CO2), real GDP, urbanization and energy intensity was examined by panel analysis methods for 27 high, 24 upper-middle and 21 low middle-income countries between 1990 and 2014. FMOLS and DOLS methods and Dumitrescu Hurlin Panel causality method were used in the analyzes made in the study. Findings: According to the results of FMOLS and DOLS methods, it is seen that the Environmental Kuznets Curve hypothesis is valid in high and high middle-income countries, but not in low middle-income countries. In the other results obtained, it has been determined that urbanization is an important factor in environmental pollution. According to the results of the Dumitrescu-Hurlin causality test, it is seen that there is a unidirectional causality relationship from carbon emissions to economic growth in high-income countries and bidirectional causality in high-middle and low-middle income countries. Limitations: n the study, within the scope of the classification made by the United Nations, a total of 72 countries (27 high-income, 24 upper-middle and 21 low-middle income countries are included in Annex 1). Originality/Value: The study differs from other studies in terms of evaluating the countries in different income groups together and evaluating the impact of the difference in income level on the environment.