Environmental Kuznets Curve: Conclusive Econometric Evidence for <fr>CO<sub>2</sub></fr>
This paper begins with a statistical formulation of the Environmental Kuznets Curve (EKC) and discusses the major econometric problems raised in the literature in testing this hypothesis using panel data. A simple t-test is then presented that avoids these econometric problems. The result from applying the t-test confirms conclusively the EKC for <fr>CO<sub>2</sub></fr> as formulated.