Validity of the Environmental Kuznets Curve hypothesis: panel data analysis for selected OECD countries

Industrialization, population growth and urbanization, along with the increase in environmental pollution and the efficient use of scarce resources have become a matter of attention today.This study examines the relationship between environmental pollution and economic growth, which negatively affects sustainable development. For this purpose, panel data analysis was applied to selected countries to test whether the Environmental Kuznets Curve Hypothesis is valid. The study examines the validity of the Environmental Kuznets Curve Hypothesis using the data obtained from the World Bank (WDI) for 10 selected OECD countries for the period 1990-2023 using the Stata 14 program.As a result of the analysis, it was concluded that the Environmental Kuznets Curve Hypothesis is valid in the selected OECD countries. In particular, it has been determined that the increase in GDP increases CO2 emissions up to a certain amount and then starts to decrease after the level of approximately $10 trillion. This study offers a different perspective to see the true extent of environmental pollution and increase our individual awareness. In addition, although economic development is an important issue, the necessity of developing effective environmental policies and technological innovations in order to achieve this with minimum damage to the environment and to leave a more livable world to future generations contributes to the literature in the memoir. Keywords: Environmental Pollution, Environmental Kuznets Curve Hypothesis, Economic Growth, Panel Data Analysis, OECD Countries