Economic Growth and Environmental Degradation in a Global Context

The overall aim of this study is to analyse the relationship between economic growth and environmental degradation with particular reference to carbon emissions and deforestation. The analysis is based upon the Environmental Kuznets Curve (EKC) model, which posits an inverted-U relationship between incomes per capita and environmental quality. In particular, the present analysis tries to take into account the current process of globalisation with the aim of defining the impact of the progressive global economic integration on the relationship between economic growth and environmental degradation. The study confirms that there is an inverted-U relationship between income growth and carbon emissions, while the relationship results less clear in the case of forest change. The inclusion of globalisation in the analysis confirms similar results and suggests a direct link between an increase in the rate of integration with the global economy and a worsening in terms of environmental degradation.