This review surveys the influence of economic growth, trade openness, and energy consumption on environmental pollution (specifically, CO2 emissions) within a group of developing economies. The sample consists of 37 countries classified as upper-middle-income developing economies by the World Bank, covering the period from 2000 to 2023. The estimations were conducted via the Parks-Kmenta Feasible Generalized Least Squares (FGLS) method. The evidences remark that a 1% rise in economic growth (GDP) leads to a 2. 71% rise in CO2 emissions. This affair persists up to a certain threshold; initially, economic growth degrades environmental quality. However, this process lastly peaks, reaching a turning point where the affair inverts in later stages of development. Beyond this turning point, a 1% rise in economic growth (represented by the squared GDP term) diminishes CO2 emissions by 0. 16%. In other words, as wealth improves beyond a specific income level, greater emphasis is placed on environmental quality, leading to a reduction in pollution. Regarding other variables, a 1% rise in energy use (ENG) boosts CO2 emissions by 1. 73%. Conversely, a 1% rise in trade openness (TRD) diminishes emissions by 2. 08%, and a 1% rise in renewable energy consumption (REW) leads to a 0. 17% reduction in emissions. Urban population density (URB), included as a control variable, is found to rise CO2 emissions by 1. 06% for every 1% increment. An analysis of the variables discloses that the primary driver of environmental degradation is the economic growth efforts of countries at lower income levels (GDP impact: 2. 71%). Besides, the calculated turning point for the studied countries is 3, 077 per capita. This purports that environmental pollution rises until per capita income reaches 3, 077, peaks at this level, and afterwards, the influence of economic growth on pollution shifts from positive to negative.
Mustafa Kerem Börü Duygu Çelik (Sun,) studied this question.