This study aims to examine the relationship between economic growth and environmental degradation. The carbon
dioxide emission (COଶ emissions) per capita is used to be a proxy for environmental degradation, using time series data
from the period between 1980 and 2010. To avoid the problems of non-stationary associated with time series analysis,
the Dickey-Fuller unit roots is checked as to ascertain whether the variables are stationary, by transforming the
dependent and independent variables in the first different operator form. This study is based on the hypothesis of the
Environmental Kuznets Curve (EKC) that environmental degradation follows an inverted U-shaped trajectory in relation
to economic growth. The result of this study confirms the invested correlation between economic growth and
environmental degradation of EKC’s hypothesis that at the early stage economic growth increases environmental
degradation, then environmental degradation decreases after reaching a certain level of average income per capita.
Moreover, other factors, such as trade openness, industrial extension, and becoming a full member of ASEAN, also
cause an increase in environmental degradation. In order to reach the sustainable development goal, strong
environmental and natural resource protection policies are suggested for the current and future development of Laos.
This study aims to examine the relationship between economic growth and environmental degradation. The carbondioxide emission (COଶ emissions) per capita is used to be a proxy for environmental degradation, using time series datafrom the period between 1980 and 2010. To avoid the problems of non-stationary associated with time series analysis,the Dickey-Fuller unit roots is checked as to ascertain whether the variables are stationary, by transforming thedependent and independent variables in the first different operator form. This study is based on the hypothesis of theEnvironmental Kuznets Curve (EKC) that environmental degradation follows an inverted U-shaped trajectory in relationto economic growth. The result of this study confirms the invested correlation between economic growth andenvironmental degradation of EKC’s hypothesis that at the early stage economic growth increases environmentaldegradation, then environmental degradation decreases after reaching a certain level of average income per capita.Moreover, other factors, such as trade openness, industrial extension, and becoming a full member of ASEAN, alsocause an increase in environmental degradation. In order to reach the sustainable development goal, strongenvironmental and natural resource protection policies are suggested for the current and future development of Laos.
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