doi: 10.18178/ijesd.2025.16.3.1523
Climate Change and Environment Kuznets Curve in Developing Economies (D-8 Nations)
Asma Arif1
,
Umaima Arif2 ,
Sania Shaheen1 ,
Muhammad Danish Habib3 ,
Festus Victor Bekun4,5,6,* ,
Murat Ismet Haseki7
- 1Department of Economics, University of Wah, Wah Cantt 47040, Pakistan
- 2School of Economics, Quaid-i-Azam University Islamabad 46000, Pakistan
- 3Department of Business Administration, Air University Islamabad, Aerospace and Aviation Campus Kamra 43570, Pakistan
- 4Department of Logistics Management, Istanbul Gelisim University, Istanbul, Turkey
- 5University of Economics and Human, Sciences in Warsaw, Warsaw, Poland
- 6Research Center of Development Economics, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan
- 7Department of Business Administration, Kozan Faculty of Business Administration, Cukurova University, Adana, Turkey
- Manuscript receivedDecember 1, 2024
- revisedFebruary 1, 2025
- acceptedMarch 12, 2025
- publishedMay 20, 2025
Abstract
The main goal of the current study is to determinethe relationships between CO<sub>2</sub> emissions and the inflow offoreign investment for developing economies (D-8 countries) todetermine whether or not the environmental Kuznets curvehypothesis is validated or otherwise for the study areas. Thedependent variable in the current study is carbon dioxideemissions. The population was used as the control variable inthis study, while the independent variables were populationgrowth, per capita Gross Domestic Product (GDP), inflow offoreign investment, inflation, and open trade for D-8 countriesfrom 1999 to 2023. The Fixed Effect (FE) and Random Effect(RE) model techniques were used for empirical analysis, and theHausman test was used to choose the best-fitting model for thisstudy. Empirical findings validate the existence of theEnvironmental Kuznets curve (EKC) hypothesis in D-8countries over the study period. Additionally, there is a strongpositive correlation between the inflow of foreign investmentand carbon emissions, supporting the pollution heavenhypothesis, which holds that developed countries transfer theirobsolete technology to developing nations. This paper explainshow Foreign Direct Investment (FDI) and GDP per capitaimpact carbon dioxide emissions in developing countries andassists policymakers in proposing policies to draw in higherqualityFDI. Developing countries need to take a comprehensiveand varied approach to achieve green economic growth. Byutilizing renewable energy and promoting environmentallyfriendly transportation it is currently crucial to turn thetransportation sector green and promote environmentallyfriendly transportation to lessen environmental effects andmake the environment more environmentally friendly. Thismay be done by using renewable energy and encouragingenvironmentally friendly transportation. The need tocoordinate global policies with the Sustainable DevelopmentGoals (SDG) is the main subject of this study, especially when itcomes to achieving sustainable economic growth with the fewestpossible environmental risks. Government and policymakersmay achieve a sustainable future for developing nations bybalancing economic development and environmentalsustainability by focusing on green economic growth.
Keywords
- carbon dioxide emissions
- gross domestic product per capita
- foreign direct investment
- inflation
- trade openness and population growth; developing economies
How to Cite
Asma Arif, Umaima Arif, Sania Shaheen, Muhammad Danish Habib, Festus Victor Bekun, and Murat Ismet Haseki, "Climate Change and Environment Kuznets Curve in Developing Economies (D-8 Nations)," International Journal of Environmental Science and Development, vol. 16, no. 3, pp. 174-181, 2025. https://doi.org/10.18178/ijesd.2025.16.3.1523
Copyright & License
Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).