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Sustainable Growth-Environment Nexus in the Context of Four Developing Asian Economies: A Panel Analysis

Author

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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 has used a STIRPAT model to investigate the synergistic effect of CO2 emission, energy consumption, energy intensity, economic growth, population, urbanization and trade openness to demonstrate growth-environment nexus in four selected developing Asian economies. Taking a panel data set from Bangladesh, China, India and Indonesia this study applies Autoregressive Distributed Lag (ARDL) model and VEC Granger Causality/Block Exogeneity Wald Tests. The empirical results show that energy intensity, urbanization, population, and per capita GDP growth are the raison d'etre of CO2 emissions whereas trade openness is found to be negatively related to CO2 emissions. Conversely, energy consumption, urbanization, population and trade openness are positively related to per capita GDP. In addition, it also investigates the Environmental Kuznets Curve (EKC) hypothesis and the findings substantiate an inverted U-shaped relationship. Cross-section short-run coefficients of country-level data are inquired into to check the robustness of the panel outcomes.

Suggested Citation

  • 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.
    • Handle: RePEc:mgt:youmgt:v:18:y:2020:i:3:p:237-256
    DOI: 10.26493/1854-6935.18.237-256
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    More about this item

    Keywords

    EKC hypothesis; STIRPAT model; CO2 emission; urbanization; energy consumption;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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