Exploring the key factors between economic growth and environmental degradation: the Kuznets Curve in the Ecuadorian context
DOI:
https://doi.org/10.15611/aoe.2026.1.08Keywords:
Environmental Kuznets Curve (EKC), CO2 emissions, environmental degradation, economic growth, autoregressive distributed lagAbstract
Aim: The objective of this work was to evaluate the applicability of the Environmental Kuznets Curve (EKC) in the Ecuadorian context.
Methodology: An econometric analysis was carried out using the ARDL model to assess its validity in the Ecuadorian context, identifying significant relationships between economic growth and environmental degradation in the short and long term. This approach made it possible to examine the temporal dynamics between variables, revealing possible causal effects and providing an empirical basis for sustainable policymaking.
Results: The results indicate that Ecuador exhibits a nonlinear long-term relationship between economic growth and CO₂ emissions consistent with the Environmental Kuznets Curve. In the long run, economic growth and energy consumption are significant determinants of environmental degradation, while institutional quality does not play a structural role. In the short run, emissions dynamics are driven mainly by changes in energy consumption and institutional conditions, highlighting the importance of energy dependence and governance factors in shaping environmental outcomes.
Implications and recommendations: This study highlighted the need to adopt comprehensive strategies that foster sustainable growth by transitioning to renewable energy sources, implementing cleaner technologies, and strengthening environmental legislation.
Originality/value: The relationship between economic growth and environmental degradation has been extensively studied using the Environmental Kuznets Curve (EKC), however this article focused specifically on Ecuador, which constitutes an original contribution by applying a dynamic ARDL model with national data. The study provided novel empirical evidence in a country characterised by its high environmental diversity and structural challenges, demonstrating that, even within Latin America, Ecuador presents unique patterns that warrant a specific analysis.
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Copyright (c) 2026 Rosa Mayra Llerena Guevara, Roger Tomás Yela Burgos, Evelyn Silvana Vergara Molina, Hugo Stuard Galarza Carriel, Giojan Ricardo Aguirre Perez
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Accepted 2025-10-12
Published 2026-05-15
