This study aims to test the relevance of EKC hypothesiswhile also test the impact of percapita GDP and energy consumption percapita towards environmental degradationin lower-middle, upper-middle, and high income countries over the period of 1985 - 2014. This study uses panel data method and Random Effect Model (REM) approach for lower-middle and high income countries, while for upple-middle income country uses Fixed Effect Model (FEM) approach. This study findsthat the EKC hypothesis is relevant in upper-middle income country, with the turning point of percapita GDP at USD 9,143. In addition, this study also findsthat energy consumption percapitahasa positive and significant impact on environmental degradation in all income groups, and percapita GDP hasa positive and significant impact on environmental degradation in lower-middle and upper-middle country, meanwhile a negative and significant impact in high income country.