Estimating the Environmental Kuznets Curve for Mexico 1974-2020
Abstract
The article seeks to validate the Environmental Kuznets Curve (EKC) in the Mexican economy. To achieve this, we utilize annual data aggregate between 1973 and 2020 to test the long-term quadratic relationship (inverted ‘U’ shape) between pollution levels (CO2 emissions) and income level (GDP per capita). We model empirically the EKC following a time series approach, Autoregressive Distributed Lags (ARDL), which captures both short and long-term relationships between the two variables. The estimation results indicate that the EKC holds for the analyzed period, suggesting that CO2 emissions are determined by the level of per capita income.
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