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ENVIRONMENTAL KUZNETS CURVE FOR CARBON EMISSIONS IN BOSNIA & HERZEGOVINA

The relationship between environmental quality and economic growth has been empirically modeled through emissions–income relationship so far, and the outcome of most of these studies has been formulated by the so called environmental Kuznets curve (EKC) hypothesis. According to the environmental Kuznets curve hypothesis, the relationship between per-capita GDP and per capita pollutant emissions has a U shape, an inverted-U shape, a N shape and an inverted-N shape. This implies that, economic growth may be profitable for environmental quality. The purpose of this study is to test whether the EKC hypothesis is valid for Bosnia and Herzegovina. Firstly, EKC relationship for CO2 emissions for Bosnia & Herzegovina, over a time period of 1992–2009, has been tested and tried to determine relationship between CO2 emissions–income. As a result of the analysis EKC hypothesis is rejected and inverted N shaped relationship was found between CO2 emissions–income

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