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Theoretical and Applied Economics
No. 2 / 2023 (635), Summer

The effect of poverty and income inequality on CO2 emission based on Environmental Kuznets Curve analysis: Empirical evidence from selected developing countries

Yusuf Ekrem AKBAS
Adıyaman University, Adıyaman, Turkey
Fuat LEBE
Osmaniye Korkut Ata University, Osmaniye, Turkey

Abstract. In this study, the relationship between carbon dioxide (CO2) emissions, energy consumption, income inequality, and poverty within the framework of the Environmental Kuznets Curve (EKC) in 10 developing countries over the period 2000-2021 is investigated. Also, the turning points for GDP per capita are calculated. The Fourier methodology is used for analysis. The results show that income inequality, poverty, and energy consumption positively affect CO2 emission. Moreover, it is found out that the EKC hypothesis is invalid. It is determined that the turning points are outside of the sample period in five developing countries (Argentina, Armenia, Kazakhstan, Panama, and Uruguay).

Keywords: EKC hypothesis, CO2 emission, poverty, income inequality, Fourier panel analysis.

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