The Epc Hypothesis Revisited in G-20 Countries : A Novel Panel Data Analysis

This paper examines the effects of the unemployment rate, consumption of renewable energy, and oil rents on the annual greenhouse gas emission rate of G-20 countries from 1991 to 2020 by using second-generation panel data analysis. The primary goal is to examine the validation of Environmental Phillips Curve hypothesis in G-20 countries. According to the empirical estimations, all the variables are cross- sectionally dependent, differenced stationary, and cointegrated over the long run. Also, DCCE estimates found that the unemployment rate and greenhouse gas emissions are negatively related. Therefore, the EPC hypothesis is validated in G-20 countries. Moreover, findings also reveal that greenhouse gas emissions is negatively related to renewable energy consumption and positively related with oil rents, respectively