The Effect of Culture on the Relationship between Income and CO2 Emission in the Framework of the Environmental Kuznets Curve

The present paper examines the effect of culture on the relationship between income and carbon dioxide emissions in the framework of the Environmental Kuznets Curve (EKC) using dynamic panel and system GMM estimator for 77 developed and developing countries for the period 1990 to 2014. Results of estimation by system GMM indicate: (i) the existence of EKC, and (ii) significant impact of culture on the relationship between income and CO2 emissions. The impact of six dimensions of culture on EKC can be classified into two categories: (i) masculinity, power distance and indulgence move the EKC upward and shift the income turning point to the left; and (ii) individualism, uncertainty, and long-term orientation move the EKC downward while shifting the income turning point to the right.