Abstract

ORTIZ-PANIAGUA, Carlos Francisco  and  GOMEZ, Mario. Economic Growth and Environmental Quality in Latin America, Perspective from Kuznets, 1970-2016. Econ: teor. práct [online]. 2021, n.55, pp.17-36.  Epub Oct 25, 2021. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/552021/ortiz.

Attempts have been made to explain the relationship between development and environmental quality through different theoretical-methodological approaches. This article analyses the Environmental Kuznets Curve (EKC) hypothesis for 19 Latin American countries during the period 1970-2016. The results show that the variables (CO2, GDP and GDP square) have cross-section dependence, are integrated of order one and maintain a long-term equilibrium relationship. There is a bidirectional causation relationship between economic activity and emissions, which implies that economic growth has information that helps to predict emissions behavior and viceversa. The EKC hypothesis is supported, meaning that when economic activity increases, polluting emissions do, too as economies advance in their stages of economic development up to a certain income level, after which emissions grow more slowly than production. This tends to happen because of the use of cleaner technologies, people’s greater awareness of the environment and more effective environmental regulations.

Keywords : Environmental quality and economic development; Kuznets Curve; development and environment in Latin America; F13; Q53; C23; C31.