Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?

Abstract

Based on a sample of 1974–2016 annual data of Vietnam, we show that the EKC does not exist in the short run but only in the long run. However, the N-shape describes better the long-run income-pollution relationship. This implies that Vietnam can expect a temporary reduction in CO2 emissions at a given stage of economic growth. However, this will be followed by a further increase of CO2 emissions after reaching another income turning point. The Vietnamese government should thus focus on long-term economic and environmental strategies. A robustness check shows that these results are not impacted by the variables' selection.