Using the Environmental Kuznets Curve to Study the Mutual Effects between CO2 Emissions and Economic Growth in Jordan
Mohaned Al-Hamdi, Mohammad Alawin, Kais Alwan and Saeed Al-Tarawneh
DOI : 10.3844/ajabssp.2016.128.136
American Journal of Agricultural and Biological Sciences
Volume 11, Issue 3
This study analyzes the dynamic relationship between economic growth and CO2 emissions in Jordan using the Environmental Kuznets Curve. The study looks at the direction of the causal relationship both in the long and short-run to determine the mutual effects between the two variables during the 1980-2010 period. Using the ARDL bound testing approach and the Vector Error Correction Model (VECM), the study shows that the results are consistent with the Environmental Kuznets Curve (EKC) hypothesis. Furthermore, the study shows the existence of a bidirectional causal relationship, both in the long and short run, between economic growth and CO2 emissions. Based on that, the authors conclude that environmental issues must be taken into consideration when formulating economic policies, as well as using environmentally friendly technologies in the manufacturing and transportation sectors.
© 2016 Mohaned Al-Hamdi, Mohammad Alawin, Kais Alwan and Saeed Al-Tarawneh. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.