Is Education Compulsory for Environmental Quality? An Empirical Study on EKC and Education Nexus

Abstract

Studies analyzing the environmental impacts of economic growth and considering the nexus between the stages of development remain popular since the 90s. The Environmental Kuznets Curve (EKC) hypothesis suggests that there is an inverted-U-shape relationship between per capita income and damage to the environment. Within the vast EKC literature, various variables that may have an impact on environmental pollution were included in the models. However, studies examine the effect of education on environmental quality are relatively new. In this study, the EKC hypothesis is tested in terms of per capita income and education level by using data from the period of 1998- 2014 of 47 countries. Environmental pollution is measured by carbon dioxide per capita; income level is measured by GDP per capita, and education level is measured by the number of students enrolled in tertiary education and the share of public expenditures on education in GDP. According to the empirical findings; (i) The Environmental Kuznets Curve hypothesis is confirmed for only the number of students enrolled in tertiary education, (ii) there is a significant and negative relationship between the share of public expenditures on education in GDP and CO2 emissions. Therefore education can be evaluated as a powerful tool for environmental policy.