Threshold effect between environment and economic growth in Côte d'Ivoire

Abstract

The objective of this paper is to empirically assess the impact of economic growth on carbon dioxide (CO2) emissions in Côte d'Ivoire. To do so, we adopted an empirical methodology based on a threshold effect regression, in this case the quadratic model. The data used in this study cover the period from 1990 to 2021. The results obtained from the estimations reveal that economic growth would be detrimental to the environment in the early stages of development; then, above a certain threshold of per capita income, economic growth would lead to an improvement in environmental quality. In other words, the relationship between growth and environmental degradation would be inverted U-shaped. The environmental Kuznets curve is confirmed for Côte d’Ivoire economy and the optimal threshold of GDP per capita is 1881.30 US Dollars.