ECONOMIC GROWTH AND ENVIRONMENTAL DEGRADATION IN CANADA: AN EMPIRICAL ANALYSIS OF THE ENVIRONMENTAL KUZNETS CURVE

The Environmental Kuznets Curve (EKC) hypothesis postulates an inverted U-shaped relationship between measures of environmental degradation and per capita income. This paper empirically tests the validity of the EKC hypothesis in Canada for per capita emissions of green house gases (GHG), CO2, NOX, SOX, CO, and total particulate matter (TPM) emissions. The regression equations estimated are quadratic and cubic functions of per capita GDP. The type of data used are provincial and territorial level cross-sectional panel data and country level time-series data. The study finds that per capita emissions of GHG and CO exhibit inverted-U relationships with per capita GDP. In contrast, per capita SOX and TPM emissions follow a U-shape curve, In addition, per capita CO2 emissions may follow either an inverted U or an N shape curve. Furthermore, this study finds insufficient empirical evidence of an EKC for per capita NOX emissions.