Testing Environmental Kuznets Curve in the USA: What Role Institutional Quality, Globalization, Energy Consumption, Financial Development, and Remittances can Play? New Evidence From Dynamic ARDL Simulations Approach

This study intends to examine the validity of Environmental Kuznets Curve (EKC) in United States America (USA), considering vital role macroeconomic variables, such as economic growth, institutional quality, globalization, energy consumption, financial development, urbanization, and remittance from 1985 2020. The impact positive/negative shock a regressor on CO 2 emissions keeps other regressors unchanged has been investigated using novel dynamic stimulated autoregressive distributed lag (ARDL) model. empirical findings revealed positive growth negative square environmental degradation short- long term. It indicates EKC hypothesis case USA. Moreover, remittances inflow, urbanization reduce quality. On contrary, quality improves by reducing emissions. appropriate recommendations design inclusive economic-environment national policy were proposed.