Using the Environmental Kuznets Curve to Study the Mutual Effects between CO₂ Emissions and Economic Growth in Jordan

This study analyzes the dynamic relationship between economic growth and CO 2 emissions in Jordan using the Environmental Kuznets Curve. The study looks at the direction of the causal relationship both in the long and short-run to determine the mutual effects between the two variables during the 1980-2010 period. Using the ARDL bound testing approach and the Vector Error Correction Model (VECM), the study shows that the results are consistent with the Environmental Kuznets Curve (EKC) hypothesis. Furthermore, the study shows the existence of a bidirectional causal relationship, both in the long and short run, between economic growth and CO 2 emissions. Based on that, the authors conclude that environmental issues must be taken into consideration when formulating economic policies, as well as using environmentally friendly technologies in the manufacturing and transportation sectors.