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CO2 emissions, urbanisation and economic growth: evidence from Asian countries

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  • Soheila Khoshnevis Yazdi
  • Anahita Golestani Dariani

Abstract

This paper empirically examines the dynamic causal relationships between CO2 emissions, energy consumption, economic growth, trade openness and urbanisation for the period 1980–2014 using the pooled mean group (P.M.G.) approach and panel Granger causality tests for Asian countries. Using panel unit root tests we found that all variables integrated of order 1. From the Pedroni panel cointegration test, there is a long-run relationship among the variables. The results showed that urbanisation increases energy consumption and CO2 emissions. Environmental quality is considered a normal good in the long run. The Granger causality test results support that there is a bidirectional causal relationship between economic growth, urbanisation and CO2 emissions. Consumption is greater than the impact on CO2 emissions in the eastern region and some evidence supports the compact city theory. These results contribute not only to advancing the existing literature, but also deserve special attention from policymakers and urban planners in Asian countries.

Suggested Citation

  • Soheila Khoshnevis Yazdi & Anahita Golestani Dariani, 2019. "CO2 emissions, urbanisation and economic growth: evidence from Asian countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 510-530, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:510-530
    DOI: 10.1080/1331677X.2018.1556107
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    Cited by:

    1. Jacob Otim & Susan Watundu & John Mutenyo & Vincent Bagire, 2023. "Fossil Fuel Energy Consumption, Economic Growth, Urbanization, and Carbon Dioxide Emissions in Kenya," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 457-468, May.
    2. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Rina Astini & Kehkashan Ishrat & Yanto Ramli & Tafiprios Tafiprios & Kwong Wing Chong & Ooi Chee Keong, 2023. "Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 339-347, September.

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