Özet:

This study is unique from methodological and contextual aspects despite many researchers show the empirical evidence and nexus between environmental degradation and economic growth. The goal of this study is to estimate Environmental Kuznets Curve (EKC) hypothesis for Bangladesh. Using the data available from 1972 to 2013, we estimated EKC under FMOLS (Fully Modified Ordinary Least Square) approach, Engle-Granger, and Phillips-Ouliaris cointegration test for the long run, and Granger causality test for a short-run relationship. The study shows that energy consumption increases with the increase in economic growth, thereby pollution increases Moreover, it reveals that non-renewable energy consumption is the primary cause of pollution (greenhouse gas emission) in Bangladesh. The study also confirms an inverted U-shaped EKC for Bangladesh. The major policy recommendation is to stimulate the use of renewable energy sources to reduce pollution and to promote higher economic growth.

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