Environmental Sustainability and Economic Growth in Greenland: Testing the Environmental Kuznets Curve

The environmental Kuznets curve (EKC) hypothesis assumes there is an inverted U-shape relationship between pollution and income per capita, implying improvement in quality when a growing economy reaches high level of economic development. This study evaluated empirically the existence Greenland for period 1970–2018. Using autoregressive distributed lag (ARDL) approach, results show evidence U-shaped EKC instead hypothesized U-shape. findings indicate that had initially experienced decoupling transition during early development stage associated with structural conditions small subsistence economy. However, once country began to expand its industry, trend reverse, creating positive significant CO2 emissions GDP capita potentially detrimental Arctic natural environment.