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http://dx.doi.org/10.13106/jbees.2021.vol11.no1.39

Environmental Damage Theory Applicable to Kenya  

ONYANGO, James (Department of Economics, School of Business and Economics, Moi University)
KIANO, Elvis (Department of Economics, School of Business and Economics, Moi University)
SAINA, Ernest (Department of Agricultural Economics and Resource Management, School of Agriculture and Natural Resources, Moi University)
Publication Information
Asian Journal of Business Environment / v.11, no.1, 2021 , pp. 39-50 More about this Journal
Abstract
Purpose: This study seeks to establish the environmental damage theory applicable to Kenya. The analysis is based on annual data drawn from World Bank on carbon dioxide emissions (CO2e) and gross domestic product per capita (GDPPC) for Kenya spanning 1963 to 2017. Research Methodology: The study adopts explanatory research design and autoregressive distributed lag model for analysis. Results: The results revealed a coefficient of -0.017 for GDPPC and 0.004 for GDPPC squared indicating that economic growth has negative effect on CO2e in the initial stages of growth but positive effect in the high growth regime with the marginal effect being higher in the initial growth regime. The findings suggest a U-shaped relationship consistent with Brundtland Curve Hypothesis (BCH). Conclusions: The findings emphasize the need for sustainable development path that enables present generations to meet own needs without compromising the capacity of future generations to meet their own. Sustainable development may include, investment in renewable energies like wind, solar and adoption of energy efficient technologies in production and manufacturing. The study concludes that BCH is applicable to Kenya and that developing affordable and effective mechanisms to boost sustainable development implementation is necessary to decrease the anthropogenic impact in the environment without any attendant reduction in the economic growth.
Keywords
Carbon dioxide emission; Economic growth; Gross Domestic Product per capita; Autoregressive distributed lag model; Brundtland curve hypothesis;
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