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The Impact of Economic Growth on Carbon Emission in ASEAN

In: Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

Author

Listed:
  • Nur Dwiana Sari Saudi

    (Hasanuddin University)

  • Muhammad Ashary Anshar

    (Nitro Business and Finance Institute)

Abstract

The tension between rapid economic expansion and environmental degradation remains a critical discourse within the Association of Southeast Asian Nations (ASEAN). This study investigates the dynamic impact of economic growth on CO₂ emissions across nine ASEAN economies from 1990 to 2022, whilst controlling for trade openness, ecological footprint, natural resource rents, and government expenditure. This study used a Pooled Mean Group (PMG) estimator in a Panel ARDL framework, which enabled it to handle problems of confounding and heterogeneity. The actual finding shows that economic growth increases carbon dioxide emissions in both the short run and long run. It implies, for example, that Kunming is possible in the kink shape upward hump of the environmental curve. Furthermore, whilst ecological footprint intensifies environmental pressure, the findings offer a nuanced perspective: trade openness, natural resource rents, and government expenditure serve as significant mitigating factors that reduce long-term emissions. This implies that international integration and fiscal policy can facilitate a transition towards sustainability. Consequently, the study posits that ASEAN policymakers must move beyond growthcentric paradigms by leveraging green fiscal reforms and technology transfer through trade to decouple economic progress from ecological degradation.

Suggested Citation

  • Nur Dwiana Sari Saudi & Muhammad Ashary Anshar, 2026. "The Impact of Economic Growth on Carbon Emission in ASEAN," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Rianda Ridho Hafizh Thaha & Muhammad Try Dharsana & Andi Tenri Harahap & Fakhrul I (ed.), Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), pages 1796-1809, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_126
    DOI: 10.2991/978-94-6239-709-5_126
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