The role of government spending within the environmental Kuznets curve framework: evidence from G7 countries

dc.authoridPIRGAIP, BURAK/0000-0001-8870-8502
dc.contributor.authorPirgaip, Burak
dc.contributor.authorBayrakdar, Seda
dc.contributor.authorKaya, Muhammed Veysel
dc.date.accessioned2025-01-21T16:55:18Z
dc.date.available2025-01-21T16:55:18Z
dc.date.issued2023
dc.departmentKırıkkale Üniversitesi
dc.description.abstractThis study assesses the role of government spending on environmental sustainability based on a framework that combines the environmental Kuznets curve (EKC) hypothesis with the Armey curve hypothesis. Specifically, the inverted U-shaped relationships between carbon (CO2) emissions and economic growth (EKC hypothesis) and between government spending and economic growth (Armey curve hypothesis) are analyzed using a composite EKC model tested for cross-sectional dependence and heterogeneity, panel unit root, panel co-integration, and the augmented mean group estimation. In so doing, this study pursues a potential transmission mechanism leading from government spending to CO2 emissions through the growth channel and presents a novel way to develop a better understanding of how economic growth policy and energy policy can be synchronized. Empirical results show that economic growth acts as a transmitter between government spending and CO2 emissions in the USA, UK, and Canada. However, the composite EKC hypotehesis is confirmed only for the USA and Canada, where the optimal level of government spending that maximizes CO2 emissions is 29.87% and 29.22% of GDP, respectively. In contrast, the optimal level of government spending equivalent to 28.30% of GDP minimizes CO2 emissions in the UK. The key policy implication is that governments can achieve sustainable economic growth by setting standards for their spending levels.
dc.identifier.doi10.1007/s11356-023-25180-9
dc.identifier.endpage81530
dc.identifier.issn0944-1344
dc.identifier.issn1614-7499
dc.identifier.issue34
dc.identifier.pmid36626056
dc.identifier.scopus2-s2.0-85145929374
dc.identifier.scopusqualityQ1
dc.identifier.startpage81513
dc.identifier.urihttps://doi.org/10.1007/s11356-023-25180-9
dc.identifier.urihttps://hdl.handle.net/20.500.12587/25754
dc.identifier.volume30
dc.identifier.wosWOS:000911910500010
dc.identifier.wosqualityN/A
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.indekslendigikaynakPubMed
dc.language.isoen
dc.publisherSpringer Heidelberg
dc.relation.ispartofEnvironmental Science and Pollution Research
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.snmzKA_20241229
dc.subjectGovernment spending; Economic growth; Armey curve; Environmental Kuznets curve; Renewable energy consumption; Carbon emissions; G7 countries
dc.titleThe role of government spending within the environmental Kuznets curve framework: evidence from G7 countries
dc.typeArticle

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