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Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility?

Iqbal, Mubasher, Kalim, Rukhsana, Ul-Durar, Shajara and Varma, Arup (2023) Environmental sustainability through aggregate demand behavior – Does knowledge economy have global responsibility? Journal of Global Responsibility. ISSN 2041-2568

Item Type: Article



This study aims to consider environmental sustainability, a global challenge under the preview of sustainable development goals, highlighting the significance of knowledge economy in attaining sustainable aggregate demand behavior globally. For this purpose, 155 countries that have data available from 1995 to 2021 were selected. The purpose of selecting these countries is to test the global responsibility of the knowledge economy to attain environmental sustainability.

Results are estimated with the help of panel quantile regression. The empirical existence of aggregate demand-based environmental Kuznets curve (EKC) was tested using non-linear tests. Moreover, principal component analysis has been incorporated to construct the knowledge economy index.

U-shaped aggregate demand-based EKC at global level is validated. However, environmental deterioration increases with an additional escalation after US$497.945m in aggregate demand. As a determinant, the knowledge economy is reducing CO2 emissions. The knowledge economy has played a significant role in global responsibility, shifting the EKC downward and extending the CO2 reduction phase for every selected country. Further, urbanization, energy intensity, financial development and trade openness significantly deteriorate the environmental quality.

This study contains the empirical existence of aggregate demand-based EKC. The role of the knowledge economy is examined through an index which is calculated by using four pillars of the knowledge economy (technology, innovations, education and institutions). This study is based on a combined panel of all the countries for which the data was available.

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Uncontrolled Keywords: EKC, knowlegde economy, STIRPAT
Depositing User: Shajara Ul-Durar


Item ID: 17075
Identification Number:
ISSN: 2041-2568
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Catalogue record

Date Deposited: 01 Dec 2023 14:50
Last Modified: 01 Dec 2023 15:00


Author: Mubasher Iqbal
Author: Rukhsana Kalim
Author: Shajara Ul-Durar
Author: Arup Varma

University Divisions

Faculty of Business, Law and Tourism > Sunderland Business School


Business and Management > Business and Management

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