This study aims to identify the long run relationship between industrial output and carbon dioxide emissions as an environmental indicator in Egypt during the period (1991-2013). In addition, the direction of causality relationship in short and long run among the variables is tested. In doing so, the vector error correction method (VECM) is applied. The empirical results reveal that the long run parameters of model are consistent with. The Environmental Kuznets Curve (EKC) hypothesis is tested for this purpose. Furthermore, the study found a directional positive causality from industrial output to CO2 in short and long run.