ENVIRONMENTAL KUZNETS CURVE: AN APPLICATION ON “BRICT” COUNTRIES

Environmental problems and the economics are closely related to each other. Increasing economic activities cause more environment damage and environmental damages affect sustainable economic growth in a bad manner. This paper examines the income level and environmental pollution relationship within a group of countries called “BRICT”- Brazil, Russia, India, China and Turkey. First, the heterogeneousity of the variables tested with delta test before the panel data analysis. After showing the cross section independence with test, second generation unit root tests are used to examine the series’ stationarity. Inter-variable cointegration proof is supplied by using Westerlund ECM panel cointegration test, and finally, long run regression coefficients are estimated with Breitung Two-stage Least Squares estimation. In the conclusion, Environmental Kuznets Curve is said to be valid for the countries in the spotlight.