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Econometric Analysis of the Effect of Economic Globalization, Energy Intensity, Urbanization, Industrialization and Growth on CO2 Emissions of Bangladesh

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  • Mowshumi Sharmin

    (Bangladesh Institute of Governance and Management, Bangladesh)

  • Mohammad Tareque

    (Bangladesh Institute of Governance and Management, Bangladesh)

Abstract

This paper examines the effect of economic globalization, energy intensity, urbanization, industrialization and growth on per capita CO2 emissions of Bangladesh employing techniques of Johansen co-integration, Vector Error-Correction Models (VECM) and VEC Granger Causality Tests. To analyse the impacts of innovations in all variables on CO2 emissions, this study additionally employs variance decomposition (VDC) for robust findings. The result of long run and causality test postulates that growth stimulates energy consumption and consequently causes CO2 emissions. VDC result posits that in the long run, energy intensity, urbanization, industrialization and growth contribute more than 60% of the CO2 emission in Bangladesh. On the other hand, effect of economic globalization becomes stronger in the long run but in explaining fluctuations in CO2 emissions it contributes only 9%. To avoid adverse effect of growth implementations of energy conservation policies are needed.

Suggested Citation

  • Mowshumi Sharmin & Mohammad Tareque, 2018. "Econometric Analysis of the Effect of Economic Globalization, Energy Intensity, Urbanization, Industrialization and Growth on CO2 Emissions of Bangladesh," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(4 (Winter), pages 335-354.
    • Handle: RePEc:mgt:youmgt:v:16:y:2018:i:4:p:335-354
    DOI: 10.26493/1854-6935.16.335-354
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    References listed on IDEAS

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    Cited by:

    1. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.
    2. Mowshumi Sharmin & Mohammad Tareque, 2020. "Sustainable Growth-Environment Nexus in the Context of Four Developing Asian Economies: A Panel Analysis," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(3 (Fall)), pages 237-256.
    3. Wu Xiaoman & Abdul Majeed & Dinara G. Vasbieva & Claire Emilienne Wati Yameogo & Nazim Hussain, 2021. "Natural resources abundance, economic globalization, and carbon emissions: Advancing sustainable development agenda," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 1037-1048, September.
    4. Afia Fahmida Daizy & Mobasshir Anjum & Md. Raied Arman & Tanzina Nazia & Nadir Shah, 2021. "Long-run Impact of Globalization, Agriculture, Industrialization and Electricity Consumption on the Environmental Quality of Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 438-453.
    5. Peterson K. Ozili, 2022. "Sustainability and Sustainable Development Research around the World," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 20(3 (Fall)), pages 259-293.

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    More about this item

    Keywords

    Johansen co-integration; globalization; CO2 emissions; urbanization; industrialization;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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