Examining the Environmental Kuznets Curve Hypothesis in Energy, Agriculture, and Industry Sectors: The Case of Kazakhstan

Abstract

This study analyzed Kazakhstan's Environmental Kuznets Curve hypothesis using the ARDL Boundary Value Approach method. The study focused on economic growth, energy production, agriculture, and industrial production variables in 2000-2022. The per capita national income variable represented economic growth, while CO2 emissions represented environmental quality. Energy consumption and production should be considered as they are interconnected in examining environmental quality and economic development. Therefore this study used the Kuznets hypothesis in a broader perspective by taking into account various factors such as agricultural and industrial production, as well as energy consumption. The results indicate that the square term of GDP in all four models is negative, which supports the Kuznets hypothesis for Kazakhstan. Furthermore, it is noteworthy that the inclusion of macro variables such as agricultural production, industrial production, and renewable energy consumption, in addition to GDP, does not alter the support for the Kuznets hypothesis. Models 2, 3, and 4 have shown that agricultural production does not have any impact on CO2 emissions. However, the same is not true for industrial production and renewable energy production, as they do have an impact. The study aimed to test the Kuznets hypothesis and reveal the impact of macro indicators on CO2 emissions. By doing so, the study not only provides useful information to country managers but also contributes to the literature by highlighting the relationships between environmental quality and macro variables.