The majority of studies investigating the environmental Kuznets curve predominantly focus on atmospheric indicators, thereby neglecting other environmental indicators such as land, sea, coastal, coral reefs, freshwater, and biodiversity indicators. This study aims to examine the environmental Kuznets curve by using capture fisheries production as a biodiversity indicator. The study uses a panel of 14 countries, of which 10 are newly industrialized and the other 4 are fast-emerging countries. The study applies the CADF and CIPS unit root tests to identify the integration order as proposed by Pesaran (2007). After identifying the unique order of integration, the Westerlund (2007) panel cointegration is applied. A long-run relationship is confirmed among the variables. The study revealed that an N-pattern relationship exists between capture fisheries production (CFP) and growth of the economy in the panel of selected countries. The industry focuses on achieving a cleaner environment and promotes the sustainable development of the fisheries. Financial development has a negative and significant effect on CFP. This reflects that domestic credit is not only used for the capture of fish but also for conservation purposes. The exports of goods and services have a positive relationship with CFP, while imports have a negative and significant effect on CFP. Policies to promote investments in the conservation of fisheries should be implemented, and credit creation should be directed by appropriate legislation to ensure the conservation of biodiversity and environmental sustainability.
Keywords: Economic growth; Environmental Kuznets curve; Fish biodiversity; N-shaped EKC; Sustainability.
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH, DE part of Springer Nature.