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Relationship between industrial development and energy-related industrial CO 2 emissions in Bangladesh: application of ARDL and LMDI models

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  • Md. Atikur Rahaman
  • Md. Afzal Hossain
  • Kanasani Rajesh

Abstract

This research investigates the relationship between industrial development and CO2 emissions stemming from energy consumption in Bangladesh's industrial sector. Employing the ARDL bound test and LMDI decomposition index model, our analysis reveals that energy consumption and industrial development exert long-term positive effects on CO2 emissions. LMDI decomposition index model shows that industrial economic activity and labour factor are the two key factors driving up CO2 emissions. But only to the degree that industry energy intensity, emissions, and energy structure variables allow for the minimisation of CO2 emissions. By elucidating these relationships and proposing actionable strategies, this study contributes to the discourse on responsible industrial development amidst the imperative to combat global warming.

Suggested Citation

  • Md. Atikur Rahaman & Md. Afzal Hossain & Kanasani Rajesh, 2025. "Relationship between industrial development and energy-related industrial CO 2 emissions in Bangladesh: application of ARDL and LMDI models," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 17(4), pages 345-372.
    • Handle: RePEc:ids:ijsuse:v:17:y:2025:i:4:p:345-372
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