Politická ekonomie 2026, 74(2)  | DOI: 10.18267/j.polek.1501

Towards Economic Growth and a Sustainable Future: Insights Beyond the Environmental Kuznets Curve

Inzamam Ul Haq, Chunhui Huo, Paulo Ferreira
Inzamam Ul Haq, Liaoning University, Business School, Shenyang, Liaoning, China
Chunhui Huo (corresponding author,), Liaoning University, Faculty of Economics, Asia-Australian Business College, Shenyang, Liaoning, China
Paulo Ferreira, Portalegre Polytechnic University, Portalegre, Portugal; VALORIZA - Research Centre for Endogenous Resource Valorization, Portalegre, Portugal; CEFAGE, IIFA - Centre for Advanced Studies in Management and Economics, University of Évora, Évora, Portugal

This study explores the dynamic nexus between economic growth and sustainable development for 92 countries across high, upper-middle, lower-middle and low-income groups. We validate the environmental Kuznets curve (EKC) hypothesis from a novel perspective. We employ a novel technique of Narayan et al. (2016) through simple cross-correlation estimates and a panel causality technique. The analysis covers data from 1990 to 2022 using annual data. Our findings show that the EKC hypothesis is supported for five out of 92 (5%) countries and that income growth will increase sustainable development for 50 (54%) countries. Notably, the analysis reveals that as income level rises, sustainable development will decrease (increase) within high-income (middle and low-income) countries in the future. The panel causality analysis finds a significant causal relationship across countries. We also address theory and policy implications.

Keywords: EKC hypothesis, economic growth, sustainable development, cross-correlation
JEL classification: O44, Q01, Q56

Received: March 20, 2024; Revised: February 10, 2025; Accepted: March 10, 2025; Prepublished online: November 2, 2025; Published: April 28, 2026  Show citation

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Haq, I.U., Huo, C., & Ferreira, P. (2026). Towards Economic Growth and a Sustainable Future: Insights Beyond the Environmental Kuznets Curve. Politická ekonomie, 74(2), 227-253. doi: 10.18267/j.polek.1501
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