Examining the Environmental Kuznets Curve in Sweden to Assess the Nexus of Economic Sectors

To support the fulfillment of Sweden’s targets in term of climate change and economic growth, we need to do a distinct study to show the Environmental Kuznets Curve (EKC) pattern in different sector of the economy, as the GDP allocation, energy intensities, GHG emission, and technological development are different between sectors. This kind of study helps to figure out how the different sectors contribute to climate change and could appoint more particular and effective environment-energy policies. For this aim, we analyzed the existence of the EKC by implementing the ARDL Bound test approach in the whole and individual sectors of Sweden’s economy throughout 1990-2019. Our results indicated the contribution of a particular sector on total GHG emissions per capita. Results of the whole economy confirmed the EEKC hypothesis with a turning point in 1996, in which the AFF sector, unlike industry and service, had increased GHG emissions. Disaggregated sectoral analysis showed various results. The industry sector had efficient energy improvement. Policymakers should pay attention to AFF’s GHG emissions, as different sources of energy consumption had not impressive impact in both the short and long term. Also, effective fossil-related policies are necessary for the service sector due to the main contribution to transportation.