Objetive

This paper analyzes the environmental Kuznets curve (EKC) for the North American Free Trade Agreement (NAFTA) countries during 1971-2014.

Methodology

In this regard, unit root, co-integration, and causality tests are applied making use of the data panel approach.

Results

Results suggest that the series in this research are integrated of order one, and a long-run relationship among variables is observed. Besides, the EKC hypothesis is confirmed. In addition, the analysis shows that renewable energy and trade openness contribute to reducing pollution in these countries.

Limitations/implications

Further research should be done to include other variables such as financial development and human capital.

Originality/value

The present paper contributes to understanding the relationship between trade openness and renewable energy consumption, on the one hand, and pollution, on the other.

Conclusions:

Policies concerned to trade openness and environmental issues should consider renewable energy and trade to reduce pollutant emissions in these countries.

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