Investigating the Validity of the Environmental Kuznets Curve in Afghanistan

Abstract

The main aim of this study to investigate the validity of environmental Kuznets Curve (EKC) in Afghanistan. This study used the annual secondary data from 2000 to 2024 of Afghanistan and employ the GMM techniques for assessment, based on the data behavior. This study initiates that the GDPpc, Foreign Direct Investment (FDI), urbanization has optimistic effect on carbon emission (CO2). However, the inflation rate has negatively influence CO2. Therefore, the empirical outcomes confirmed the existence of EKC in Afghanistan, because there is inverted U-shape relationship between GDPpc and CO2. This study recommended that to reduce CO2, the government should prioritize increasing GDP per capita in metropolitan areas and attracting FDI. This study also faced some limitation, like not consider the energy consumption due to unavailability of data.