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Some Methodological Considerations for the relationship between Environmental Degradation, Economic Growth and Energy Consumption for South Asian Countries

Author

Listed:
  • Atif Khan Jadoon

    (Department of Economics, University of the Punjab, Pakistan,)

  • Ambreen Sarwar

    (Department of Economics, University of the Punjab, Pakistan,)

  • Hafiz Muhammad Qasim

    (Department of Economics, Lahore Lead University, Pakistan,)

  • Maria Faiq Javaid

    (Department of Economics, University of the Punjab, Pakistan,)

  • Saima Liaqat

    (Department of Economics, Lahore College for Women University, Lahore, Pakistan,)

  • Munazza Ahmed

    (Department of Economics, Virtual University of Pakistan.)

Abstract

The present study is designed to investigate that how Economic Growth (EG) of the South Asian region has affected the Environmental Degradation (ED) from 1980 to 2018. This study has used Newey and West (1987) robust standard errors approach to overcome the problem of autocorrelation and heteroskedasticity in panel data. The results of the statistical model confirmed the existence of the Inverted U-shaped Environmental Kuznets Curve (EKC). Furthermore, the results also confirmed that the use of energy is also deteriorating the environment significantly. One significant contribution of the study is to check the causality between EG and CO2 by applying a relatively new approach namely Granger non-causality test presented by Dumitrescu and Hurlin (2021). The results confirmed that economic growth is contributing towards more CO2 emissions. The study concluded that South Asian countries should use environment-friendly renewable energy sources to achieve a higher growth rate.

Suggested Citation

  • Atif Khan Jadoon & Ambreen Sarwar & Hafiz Muhammad Qasim & Maria Faiq Javaid & Saima Liaqat & Munazza Ahmed, 2022. "Some Methodological Considerations for the relationship between Environmental Degradation, Economic Growth and Energy Consumption for South Asian Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 365-372.
    • Handle: RePEc:eco:journ2:2022-01-45
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    References listed on IDEAS

    as
    1. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    2. Andrews, Donald W K, 1991. "Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimation," Econometrica, Econometric Society, vol. 59(3), pages 817-858, May.
    3. Ahmad, Ashfaq & Zhao, Yuhuan & Shahbaz, Muhammad & Bano, Sadia & Zhang, Zhonghua & Wang, Song & Liu, Ya, 2016. "Carbon emissions, energy consumption and economic growth: An aggregate and disaggregate analysis of the Indian economy," Energy Policy, Elsevier, vol. 96(C), pages 131-143.
    4. Ahmed, Khalid & Rehman, Mujeeb Ur & Ozturk, Ilhan, 2017. "What drives carbon dioxide emissions in the long-run? Evidence from selected South Asian Countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1142-1153.
    5. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
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    Cited by:

    1. Rehana Firdous & Sarvjeet Kaur Chatrath & Atif Khan Jadoon & Munawar Iqbal & Syeda Azra Batool & Zameer Ul Hasan, 2023. "Exploring Dynamic Nexus between Economic Growth, Environmental Degradation, and Public Health in Pakistan: A Moderated Mediation Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 241-249, January.

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    More about this item

    Keywords

    Economic Growth; CO2 Emission; Energy Consumption; Environmental Degradation; Newey and West Approach; Non-causality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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