Transboundary Particulate Matter Pollution and the Environmental Kuznets Curve in Korea

Abstract

Recent studies on the air pollution Environmental Kuznets Curve (EKC) in South Korea imply an N-shaped curve, suggesting the worsening of air pollution in the country. This study aims to test the EKC hypothesis of South Korea by considering China’s transboundary air pollution effect. This paper estimates EKC for monthly PM10 with the generalized least squares approach using meteorological, local and economic factors, and China’s effect during 2000-2021. The finding is that PM10 pollution shows an N-shaped trajectory EKC with turning points at $7,964 and $12,897, suggesting that PM10 increases as income increases since South Korea’s GDP per capita has passed the second turning point and that China’s effect may have played a role in the process of improving and deteriorating air quality in South Korea. The result also confirms that major air pollutants (PM10, SO2, and NO2) are cointegrated using the seemingly unrelated regressions model. The findings suggest that the transboundary effects from neighboring countries should be considered when establishing policies to mitigate air pollution in South Korea. [Key Words] PM10, Environmental Kuznets Curve, Fine dust, Air pollution, Transboundary