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Asymmetric impact of textile and clothing manufacturing on carbon-dioxide emissions: Evidence from top Asian economies

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  • Haseeb, Muhammad
  • Haouas, Ilham
  • Nasih, Mohammad
  • Mihardjo, Leonardus WW.
  • Jermsittiparsert, Kittisak

Abstract

The aim of the current investigation is to analyze the impact of textile and clothing (T&C) manufacturing on carbon dioxide emission (CO2) in top Asian economies. In doing so, the study has utilized the quarterly data of percentage of manufacturing covered by T&C sector and CO2 per capita from the period of 1990–2018. The empirical investigation is carried out by applying the innovative Quantile-on-Quantile (QQ) regression and Granger causality in quantile methods. The findings of the study have identified the significant asymmetric behavior in the quantiles of T&C industry on the quantiles of CO2 emission in the considered economies. Precisely, the outcomes have documented the significant positive contribution of T&C manufacturing on CO2 emission in China, India, Pakistan, and Indonesia. On the other hand, the effect of T&C on CO2 emission is negative in the case of Vietnam. As for causal relationships, the study also confirmed the presence of bi-directional causality between T&C and CO2 emission in all countries except Indonesia, where the relationship is uni-directional. The study recommended regulators to introduce some incentives and subsidies for the new investors in T&C industry with higher emphasis on green manufacturing.

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  • Haseeb, Muhammad & Haouas, Ilham & Nasih, Mohammad & Mihardjo, Leonardus WW. & Jermsittiparsert, Kittisak, 2020. "Asymmetric impact of textile and clothing manufacturing on carbon-dioxide emissions: Evidence from top Asian economies," Energy, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:energy:v:196:y:2020:i:c:s0360544220302012
    DOI: 10.1016/j.energy.2020.117094
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