Pollution, Electricity Consumption, and Income in the Context of Trade Openness in Zambia

Type Book
Title Pollution, Electricity Consumption, and Income in the Context of Trade Openness in Zambia
Author(s)
Publication (Day/Month/Year) 2016
URL http://www.diva-portal.org/smash/get/diva2:954461/FULLTEXT01.pdf
Abstract
This paper examines the Environmental Kuznets Curve (EKC) hypothesis and tests for
causality using Dynamic Ordinary Least Squares (DOLS) and the Vector Error Correction
Model (VECM). There is evidence of long-run relationships in the three models under
consideration. The Dynamic Ordinary Least Squares (DOLS) finds no evidence to support the
existence of an environmental Kuznets curve (EKC) hypothesis for Zambia in the long-run.
The evidence from the long-run suggests an opposite of the Environmental Kuznets Curve
(EKC), in that the results indicate a U-shaped curve relationship between income and carbon
emission. The conclusion on causality based on the VECM is that there is evidence of
neutrality hypothesis between either total electricity and income or between industrial
electricity and income in the short-run Additionally, there is evidence of conservation
hypothesis in the context of residential and agricultural electricity consumption.

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