EFFECT OF ECONOMIC GROWTH ON ENVIRONMENTAL POLLUTION: A COMPARATIVE ANALYSIS BETWEEN DEVELOPED AND DEVELOPING COUNTRIES

Abstract

Environmental pollution is a critical factor worldwide due to the enhanced frequency and the severity of natural disasters and catastrophes and it crucially affects the survival of the universe. Hence the study focused on the impact of economic growth on environmental pollution. This research study comparatively analyzes the impact of economic growth on environmental pollution in developed and developing countries and it investigates the impact of economic growth and environmental pollution. The study incorporated a data series over the period of 1980-2022 of 50 countries. The panel data regression analysis employed in this study to analyze the impact of economic growth and the environmental pollution which are proxied using the Gross Domestic Product Growth rate and the Carbon Emissions (CO2) metric tons per capita with the control variable incorporated the energy consumption. In addition, the researchers assessed the Environmental Kuznets Curve (EKC) theory in the study to provide an in depth understanding on the studying field. Further the study revealed that the significant positive impact of the economic growth on the environmental pollution over the developing countries. The study supports the validity of the EKC theory in explaining the relationship between economic growth and environmental degradation. Hence, establishing environmentally friendly economic policies and practices are highly appreciated to lower environmental pollution and to shrink the adverse effects of the impact of economic growth on environmental pollution in the developing countries. These research findings highlight the importance of sustainable practices, environmental regulations, and collaborative efforts to mitigate the negative impacts of economic development on the environment. This study serves as a foundation for future research in this critical area to have a sustainable environment in the future while having a coherence between the lower emission rates and the higher economic growth rates.