Abstract:

Testing Environmental Kuznets Curve Hypothesis in Developed Countries: The Role of Kyoto Protocol ABSRACT: This study aims to investigate economic development and environment nexus by analyzing the relationship between economic growth, energy consumption, trade liberalization, urbanization and CO2 emissions for the period of 1980-2013 for 33 developed countries. In addition, the square of real GDP per capita is added as an independent variable in the model to test the validity of EKC hypothesis. It is used the dummy variables in energy consumption for the period of 2005-2013 and added in the model as an independent variable to examine the effects of Kyoto Protocol. The findings indicate that the EKC hypothesis is not valid for this country group. The effect of energy consumption on CO2 emissions is positive and statistically significant. In developed countries, the effect of trade liberalization on CO2 emissions is statistically insignificant. In the high income country group, the coefficients of the urbanization and Kyoto dummy variables are negative and statistically significant

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