Economic growth and energy consumption: The Energy-Environmental Kuznets Curve for Latin America and the Caribbean

This paper investigates the relationship between economic growth and energy consumption using the hypothesis postulated for the Energy-Environmental Kuznets Curve, which assumes an inverted-U shape relationship between income and energy consumption. Panel data for 22 Latin American and Caribbean countries for the period 1990-2011 were used. Absolute energy consumption was chosen as an environmental pressure indicator, because energy consumption is the major contributor of emissions pollutants. The results obtained in the estimations show that the hypothesis postulated for the Energy-Environmental Kuznets Curve is not supported for the region. On the contrary, the results show an exponential growth as Gross Value Added grows. Also, notable differences are shown between the analyzed economies.