Investigating the presence of the environmental Kuznets curve (EKC) hypothesis in Kenya: an autoregressive distributed lag (ARDL) approach

Abstract

This study investigates the environmental Kuznets curve (EKC) hypothesis in Kenya using the time period of 1980-2012. To achieve the objective of this study, the ARDL approach was utilized. To prevent any estimation errors and unreliability in the model, the Narayan and Narayan (Energy Policy 38:661-666, 2010) approach was used to control the multicollinearity problems in the regression. The outcome of this research revealed that fossil fuel energy consumption, GDP, urbanization, and trade openness increase air pollution mutually in the long run and short run. However, renewable energy consumption mitigates air pollution in the long run and the short run. Moreover, financial development also reduces air pollution, but only in the long run. Based on the results, the EKC hypothesis does exist in Kenya. From the findings of this research, few policy recommendations were provided to help Kenya for reducing its air pollution levels.