Exploring the environmental Phillips Curve: How do globalization, economic growth, and institutional quality shape load capacity factors in highly globalized European countries?
Article
Article Title | Exploring the environmental Phillips Curve: How do globalization, economic growth, and institutional quality shape load capacity factors in highly globalized European countries? |
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ERA Journal ID | 5850 |
Article Category | Article |
Authors | Rahman, Mohammad Mafizur, Mi̇çooğulları, Seyit Ali, Deği̇rmen, Süleyman, Alancıoğlu, Erdal and Moalla., Maya |
Journal Title | Journal of Environmental Management |
Journal Citation | 390 |
Article Number | 126322 |
Number of Pages | 12 |
Year | 2025 |
Publisher | Elsevier |
Place of Publication | Netherlands |
ISSN | 0301-4797 |
1093-0191 | |
1095-8630 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.jenvman.2025.126322 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S0301479725022984 |
Abstract | This study examines the Environmental Phillips Curve (EPC) hypothesis by analyzing the relationship between the unemployment rate (UR) and Load Capacity Factor (LCF) in the 10 most globalized European countries from 1996 to 2022. Using modern econometric methods, including the STIRPAT model and CS-ARDL, the study assesses the effects of economic growth (GDP), energy consumption (PEC), institutional quality (INQ), and globalization (KOF) on environmental sustainability. The findings robustly support the EPC hypothesis, showing that higher unemployment rates positively impact LCF, enhancing environmental quality. This effect is most evident in highly globalized nations like Germany, Sweden, and Switzerland, where decreased economic activity lowers environmental pressures. The results also reveal that economic growth negatively impacts LCF long-term, emphasizing sustainable development needs. While energy consumption degrades the environment, institutional quality and globalization contribute positively to sustainability. A unique aspect of this study is the interaction term UR∗INQ, demonstrating that institutional quality moderates the UR-LCF relationship, further validating the EPC hypothesis. These insights underscore the importance of integrated strategies for economic and environmental goals in globalized European countries. |
Keywords | Environmental phillips curve; Load capacity factor; Unemployment rate; Economic growth; Institutional quality; Globalization |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 380105. Environment and resource economics |
380204. Panel data analysis | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Business |
Kilis 7 Aralık University, Turkiye | |
Sivas Cumhuriyet University, Turkiye | |
Harran University, Turkiye | |
Mersin University, Turkiye |
https://research.usq.edu.au/item/zy5xz/exploring-the-environmental-phillips-curve-how-do-globalization-economic-growth-and-institutional-quality-shape-load-capacity-factors-in-highly-globalized-european-countries
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