Environmental Quality in Emerging Markets: EKC Hypothesis and Bond Test Perspective

Firsty Ramadhona Amalia Lubis, Nurul Anwar, Arintoko Arintoko


Emerging markets is a term that refers to economies whose economic growth is rapidly increasing and have some characteristics like developed countries. Concentration of greenhouse gases in the earth's atmosphere caused by rising global temperatures leading to warming. The EKC hypothesis was conducted by Grosman & Krueger in 1991, which supports the EKC claim that environmental degradation and economic growth are interrelated. This study aims to examine the effect of GDP variables, renewable energy consumption, forest area, and population urbanization on emissions.  This study uses the Generalized Method of Moments panel model with Bond Test analysis, with research locations in Indonesia, Malaysia, the Philippines, and Thailand. The results show that the EKC hypothesis is not proven in ASEAN emerging market countries, renewable energy consumption has a significant effect on emissions, forest land area has a significant effect on emissions, and urbanization has no significant effect on emissions.

Keywords:EKC, emissions, renewable energy, GDP, Forest

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