Investigating the environmental Kuznets curve hypothesis in Vietnam. (January 2015)

• Record Type: Journal Article
• Authors: Al-Mulali, Usama; Saboori, Behnaz; Ozturk, Ilhan
• Is Part Of: Energy policy. Volume 76(2015)
• Page Start: 123
• Page End: 131
• Publication Date: 2015-01
• Subjects: Pollution -- The environmental Kuznets curve hypothesis -- Vietnam; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2014.11.019
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: This study investigates the existence of the environmental Kuznets curve (EKC) hypothesis in Vietnam during the period 1981–2011. To realize the goals of this study, a pollution model was established applying the Autoregressive Distributed Lag (ARDL) methodology. The results revealed that the pollution haven hypothesis does exist in Vietnam because capital increases pollution. In addition, imports also increase pollution which indicates that most of Vietnam's imported products are energy intensive and highly polluted. However, exports have no effect on pollution which indicates that the level of exports is not significant enough to affect pollution. Moreover, fossil fuel energy consumption increases pollution while renewable energy consumption has no significant effect in reducing pollution. Furthermore, labor force reduces pollution since most of Vietnam's labor force is in the agricultural and services sectors which are less energy intensive than the industrial sector. Based on the obtained results, the EKC hypothesis does not exist because the relationship between GDP and pollution is positive in both the short and long run. Highlights: The environmental Kuznets curve (EKC) hypothesis in Vietnam is investigated. The Autoregressive Distributed Lag (ARDL) methodology was utilized. The EKC hypothesis does not exist.