Question 1

The Environmental Kuznets Curve (EKC) remains an empirical puzzle that cannot be consistently proven nor disproved. While some studies have evidenced the relationship described by the EKC, others have disputed it.

This environment-growth relationship can be studied, within a single country, using a simplified model as follows:

ln(Et/Pt) = β0 + β1(GDPt/Pt) + β2(GDPt/Pt) 2 + εt

Where E: Emissions of pollutant P: Population GDP: Gross Domestic Product

ε: Random error and t denotes time period。

Question 1a）

Choose one (1) country and one (1) type of emission of your preference, subjected to data availability. Using the World Development Indicators database by the World Bank, https://databank.worldbank.org/source/world-development-indicators ,

collect, apply and analyse the extracted dataset using the given regression. Present the regression equation and output.

Question 1b）

Do your findings support the Environmental Kuznets Curve hypothesis or otherwise? Discuss and provide explanations of your findings, including interpretations of the estimated coefficients, validity of your analysis, and others.