Economic growth and environmental degradation in Ethiopia : An Environmental Kuznets Curve Hypothesisanalysis approach

Sammanfattning: The main objective of this study was to investigate the relationship between GDP per capitaand carbon dioxide emission per capita in Ethiopia from 1981 to 2020. All the variables in thispaper are stationary in their difference. Johansen cointegration is chosen over the Engel-Granger approach due to the presence of two cointegration equations. The result from thevector error correction model implies the existence of a short and long-run relationship betweenthe carbon dioxide emission per capita, gross domestic product per capita, and trade openness.In the long run, the Environmental Kuznets curve hypothesis is valid in this study.