Urbanization and energy consumption effects on carbon dioxide emissions: evidence from Asian-8 countries using panel data analysis
2020
Abbasi, Muhammad Ali | Parveen, Shabana | Khan, Saleem | Kamal, Muhammad Abdul
The developing world is facing pivotal challenges in recent times. Among these, global warming has ominous repercussions on every segment of society, thus tracing its underlying causes is imperative. This research attempts to investigate the impact of urbanization and energy consumption on carbon dioxide emissions (CO2) for a panel of 8 Asian countries (Bangladesh, China, India, Indonesia, Malaysia, Nepal, Pakistan, and Sri Lanka) over the period 1982 to 2017. The analyses are executed using panel co-integration and Granger causality techniques. The main findings of panel co-integration reveal a long-run relationship between urbanization, energy consumption, and CO₂ emissions. Furthermore, the results indicate a positive and significant impact of urbanization and energy consumption on CO₂ emissions, indicating that urban development and high energy consumptions are barriers to improve environmental quality in the long run. The results also highlight bi-directional causality between energy consumption and urbanization, while unidirectional causality exists between energy consumption and CO₂ emissions. Based on the obtained results, this study offers useful policy implications for plummeting carbon emissions.
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