The paper examined the causality in both static and dynamic framework between CO2 emissions and economic growth of SAARC countries over the period 1972-2010 using panel approach. The paper presents the facts obtained on the basis of panel unit root test, panel-cointegration test , panel VECM and Impulse Response functions (IRFs) and Variance decomposition (VDs). IRFs and VDs analysis indicate that CO2 emissions, GDP have positive impact on each other. The result from the application of VECM analysis suggests unidirectional causality running from economic growth to CO2 emissions. The result found contradicts the Environmental Kuznets Curve hypothesis.

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The main objective of this study is to examine the relevance of the environmental Kuznets curve (EKC) hypothesis in describing the relationship between air pollution and development of a panel of 21 Indian states, using data for the period 2001–2016. This article attempts to use panel unit root, the panel cointegration test and panel dynamic ordinary least square approach to examine the relationship among various variables, including the atmospheric concentration of sulphur dioxide (SO2)/nitrogen dioxide (NO2), net state domestic product, social sector expenditure and other variables used as a proxy for the composition effect and development effect. The empirical analysis indicates that there exists a long-term relationship between the concentration of SO2 and NO2 with per capita income and other variables. In terms of the EKC hypothesis, the findings recommend the existence of a cubic relationship in the long run and emphasise the need to bring environment-friendly structural changes in economic activity and to enhance sustainable development through technological innovation.