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Uluslararası Ekonomi ve Yenilik Dergisi
Article . 2025 . Peer-reviewed
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Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model

Authors: Demet Eroğlu Sevinç; Merter Akıncı;

Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model

Abstract

Various studies and research were carried out, particularly by developed countries, to ensure that the production process, a fundamental part of economic growth and development, is carried out in an environmentally sustainable manner. In this context, the theory known as the Environmental Kuznets Hypothesis (EKH), which addresses the association between income levels and environmental damage, has been widely tested by researchers. This study investigates the relationship between income levels and environmental damage in OECD member countries and tests the validity of the EKH. For this purpose, data covering the period 1965-2020 were analyzed using a panel data-based dynamic threshold model. The analysis results suggest that the income threshold value is calculated as 3,204. The findings confirm the validity of the EKH. Additionally, the results reveal that economic growth negatively impacts the environment and leads to environmental degradation until the income threshold level is reached. However, in line with the hypothesis, once the income threshold level is exceeded, the adverse effects of economic growth on environmental degradation gradually diminish. When all findings are considered together, it is clearly demonstrated that the association between income level and environmental damage exhibits an inverted U-shape pattern

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Keywords

Economic Growth;Environmental Damage;Environmental Kuznets Hypothesis;Income Level;Panel Dynamic Threshold Model., Environmental Economy, Econometric and Statistical Methods, Ekonometrik ve İstatistiksel Yöntemler, Ekonomik Büyüme;Çevresel Tahribat;Çevresel Kuznets Hipotezi;Gelir Düzeyi;Panel Dinamik Eşik Modeli., Çevre Ekonomisi

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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