A New Approach to Sustainable Development: Analysis of the Environmental Phillips Curve Hypothesis

This study aims to test the Environmental Phillips Curve hypothesis, which assumes a negative relationship between environmental pollution and unemployment in the Next-11 countries in 1991-2018. In the study in which ecological footprint was used as an indicator of environmental pollution, the long-term relationship was estimated using the LM test, and the coefficient was estimated using the Augmented Mean Group and Dynamic Common Correlated Effects estimators. As a result of the empirical analysis, it was found that the EPC hypothesis is valid in the Next-11 countries; in other words, the increase in unemployment reduces environmental pollution.