406959

Testing Environmental Kuznets Curve Hypothesis in Egypt: The role of industrialization, FDI and fossil fuel consumption

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Last updated: 08 Feb 2025

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Abstract

This study explores the validity of the Environmental Kuznets Curve (EKC) hypothesis in Egypt, focusing on the impacts of industrialization, foreign direct investment (FDI), and fossil fuel consumption on greenhouse gas emissions. The autoregressive distributed lag (ARDL) model used in this study to investigate both short and long-run estimates at the same time. The results reveal a positive relationship between FDI and emissions in both the short and long term. Fossil fuel consumption also shows a consistent positive correlation with emissions, as indicated by the significant coefficients for both short-term and dynamic adjustments. Industrialization contributes positively to emissions in both the short and long run. the study finds no support for the EKC hypothesis in the Egyptian context, suggesting a linear rather than inverted U-shaped relationship between economic growth and environmental degradation. Based on the findings, it is recommended to strengthen environmental regulations, advance green technologies, and attract sustainable foreign direct investment to reduce greenhouse gas emissions and foster sustainable economic development.

DOI

10.21608/cfdj.2025.353610.2148

Keywords

Environmental Kuznets Curve, greenhouse gases emissions, FDI, Industrialization, ARDL

Authors

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Mona

Last Name

Rabea Abd Elfattah Elsayed

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Affiliation

کلية التجارة ، جامعة المنصورة

Email

monarabie57@gmail.com

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First Name

Dina Khalil Ahmed Eletreby

Last Name

Eletreby

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Affiliation

كلية تجارة - جامعة المنصورة

Email

d_eletreby@mans.edu.eg

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-

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Volume

6

Article Issue

1

Related Issue

52472

Issue Date

2025-01-01

Receive Date

2025-01-16

Publish Date

2025-01-01

Page Start

1,145

Page End

1,174

Print ISSN

2682-3403

Online ISSN

2682-4531

Link

https://cfdj.journals.ekb.eg/article_406959.html

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http://journals.ekb.eg?_action=service&article_code=406959

Order

34

Type

المقالة الأصلية

Type Code

1,242

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والتجارية

Publication Link

https://cfdj.journals.ekb.eg/

MainTitle

Testing Environmental Kuznets Curve Hypothesis in Egypt: The role of industrialization, FDI and fossil fuel consumption

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Article

Created At

01 Feb 2025