The N-shaped environmental Kuznets curve for biodiversity loss: A count data analysis

While South and Southeast Asian countries have experienced resilient economic growth over the years, the region has also been a global hotspot for biodiversity loss. Thus, this study examines the income-biodiversity loss nexus within the framework of the N-shaped environmental Kuznets curve (EKC) for South and Southeast Asian countries by employing annual sample data over the period of 2013-2019. The N-shaped nexus between income and biodiversity loss is analyzed using the negative binomial regressions to deal with count outcomes and to overcome the over-dispersion issues. The estimation results consistently depict that the N-shaped EKC hypothesis holds true for South and Southeast Asia in both the aggregated model and disaggregated models (eight taxonomic groups). It is discovered that the threatened species rises when income reaches between $11,607 and $16,329 and declines when income goes to $38,880 and $52,303 over the sample period. Agricultural land and threatened species are positively related. Further, the control of corruption can lessen the decline in biodiversity. Our study reveals some important policies to achieve sustainable development without affecting the health of ecosystems in South and Southeast Asia.