Testing the environmental Kuznets curve hypothesis: an empirical study for East African countries

The green economy aims to achieve economic growth and development without an adverse effect on the environment. The environmental Kuznets curve (EKC) hypothesis explains the relationship between economic activity and environmental degradation. Using the EKC hypothesis as a theoretical framework, this study tested the EKC hypothesis for 12 East African countries using the Pooled Mean Group (PMG) approach for the period from 1990 to 2013. The result shows that the relationship between per capita income and CO2 emissions (a proxy for environmental degradation) is bell shaped and thus is an extended version of the original inverted U-shaped curve relationship between economic activities and environmental degradation. Hence, one can conclude that the economic activities in East African countries do not lead to CO2 emissions. Therefore, environmental conservation policies, technological advancement and modern industrial policies are required to make the economic growth of East African countries effective in reducing CO2 emissions.