Analyzing three Zeros (zero poverty, unemployment, and carbon emissions) in Asia and the Pacific region: Assessment of sustainable development goals through the STIRPAT model

Poverty, unemployment, and environmental degradation are growing issues and significant challenges to sustainable development. They are visible obstacles to achieving the United Nations Sustainable Development Goals (SDGs). The three ZEROS (zero net carbon emissions, zero poverty, and zero unemployment) within the SDGs have not yet been thoroughly explored and need to be empirically examined. This is the primary aim of this study, which focuses on 10 developing countries in Asia & the Pacific. The study utilized panel data from 1997 to 2021 and a stochastic impact by regression on population, affluence, and technology (STIRPAT) model and implemented the second‐generation panel unit root test, cross‐sectional augmented autoregressive distributed lags (CS‐ARDL), panel fully modified ordinary least squares (FMOLS) approaches, and panel Granger‐causality test. The empirical results of the CS‐ARDL approach vindicate that poverty contributes to the environmental deterioration proxied by CO2 emissions, while the unemployment rate inhibits the environmental damage. The other regressors, namely national income by real gross domestic product per capita, energy use, and population are harming the environment, while technological innovation and digitalization reduce environmental degradation. These results are re‐corroborated by implementing the FMOLS estimator. The Granger causality results reveal a bidirectional causality between poverty and environmental degradation. Therefore, it is essential for management authorities to implement pragmatic public policies that focus on sustainable development strategies, such as investing in education and stimulating sustainable economic growth. This will help to reduce unemployment, improve living standards, decrease poverty, and ultimately achieve the Three Zeros Club initiative and sustainable development goals.