Environmental Kuznets Curve - The case studies for the Czech Republic and Finland

Abstract

This diploma thesis deals with the Environmental Kuznets curve in order to prove or disprove its validity for CO2 and SO2 pollutants in the Czech Republic and Finland. During empirical analysis the attention was also paid to external effects, especially to environmental regulations, which may influence the variables and EKC’s shape. Based on the results of the regression analysis, the existence of a U-shape curve (EKC) was confirmed only for Finnish CO2 emissions. This conclusion confirms the ECC hypothesis assertion that the country's rising wealth reduces the amount of pollutant in the country's environment. Conversely, SO2 emissions did not confirm the U-shaped curve, but the U-shaped curves in both countries. In this case, the existence of the EKC cannot be confirmed or refuted, due to insufficient data availability.