GDP and environment pressure: The role of energy in Latin America and the Caribbean

This paper analyzes the relationship between economic growth and energy consumption for a sample of 21 Latin American and Caribbean countries during the 1970–2007 period. The investigation is made on the bases of the Energy Environmental Kuznets Curve (EEKC) hypothesis, using a panel data analysis. Energy consumption at aggregate level is used as an indicator of human environmental pressure and GDP per capita as an indicator of economic activity. Based in a cointegration approach, our results does not support the existence of a stable long run relationship between the series, rejecting the validity of such hypothesis for the selected sample over the 1970–2007 period.

► We analyze the relationship between energy consumption and per capita GDP. ► The main objective is to study the environmental pressure of energy consumption. ► We use the theoretical framework of EKC hypothesis. ► We found a U-shaped pattern instead of an inverted one. ► Socio-economic and institutional factors of the sample could explain our results.