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Testing Kuznets’ environmental hypothesis for the Legal Amazon: a nonlinear approach

Published online by Cambridge University Press:  18 September 2025

Helson Souza Open the ORCID record for Helson Souza [Opens in a new window]  and
Gerrio Barbosa
Helson Souza*
Affiliation:
Department of Economics, Regional University of Cariri (URCA-Brazil), Crato, Brazil
Gerrio Barbosa
Affiliation:
Bem Comum Association, Fortaleza, Brazil
*
Corresponding author: Helson Souza; Email: helson.souza@ufca.edu.br
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Abstract

This study tests the null hypothesis that no significant differences exist in the relationship between economic growth and deforestation, based on the levels of growth and agricultural productivity in the municipalities of the Brazilian Legal Amazon. Grounded in the environmental Kuznets curve theory, this study employs a non-linear methodological approach to estimate the relationship between economic growth and deforestation. The results reject the null hypothesis, indicating that the relationship between growth and deforestation varies with the municipalities’ productive performance. Furthermore, the findings conclude that a negative monotonic relationship exists between economic growth and deforestation in the Brazilian Legal Amazon, suggesting that reductions in deforestation are achievable even during periods of economic expansion.

Keywords

deforestationeconomic growthenvironmental Kuznets curveLegal Amazon

JEL classification

Q57: Ecological Economics: Ecosystem Services • Biodiversity Conservation • Bioeconomics • Industrial Ecology Q56: Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth Q50: General

Information

Type
Research Article
Information
Environment and Development Economics , First View , pp. 1 - 18
Copyright
© The Author(s), 2025. Published by Cambridge University Press.

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