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Impact of human capital and natural resources on environmental quality in South Asia

Author

Listed:
  • Nazish Tariq

    (The Islamia University of Bahawalpur, Department of Economics)

  • Minhaj Ali

    (European University of Lefke, Advanced Research Centre)

  • Muhammad Usman

    (University of Education, Division of Management and Administrative Sciences, UE Business School)

Abstract

This study examines the importance of human capital and natural resources on environmental quality in South Asia by using panel data that ranges from 1975 to 2021. Advanced cointegration approaches establish the long-term linkages between human capital, natural resources, economic growth, economic growth squared, urban population, industrial value added, and ecological footprint. To explore the long and short-run association among these variables, this study applied the panel autoregressive distributed lags (ARDL) model. The outcome designates that human capital has a negative and significant alliance with environmental quality, whereas economic growth and economic growth square affect environmental quality positively and negatively, confirming the existence of the environmental Kuznets curve (EKC) hypothesis. Urban population growth and natural resources have significant negative associations with environmental pollution, whereas industrial value added increases the pollution levels in South Asia. Lastly, the outcome of the interaction between human capital and natural resource rent on the ecological footprint has a significant positive effect. This study recommends that South Asian nations improve their human capital to promote industrial modernization, expansion of green technology, and energy-efficient habits. Utilizing natural resources also helps South Asian nations maintain a clean ecosystem. Additionally, South Asian nations ought to vigilantly track the negative consequences of industrialization on the atmosphere. Thus, ecological sustainability requires human capital and natural resources.

Suggested Citation

  • Nazish Tariq & Minhaj Ali & Muhammad Usman, 2025. "Impact of human capital and natural resources on environmental quality in South Asia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(12), pages 30649-30669, December.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:12:d:10.1007_s10668-024-04930-w
    DOI: 10.1007/s10668-024-04930-w
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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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