Urbanization and carbon emission: causality evidence from the new industrialized economies
2020
Khan, Khalid | Su, Chi-Wei | Tao, Ran | Hao, Lin-Na
This study elucidates the causal relationship between urbanization (URB) and carbon emission (CE) in newly industrialized countries. Countries with high economic growth that have transitioned from agricultural to industrialized economies consume a substantial portion of the world’s energy and release CE. Thus, we use the panel bootstrap Granger causality test to examine the nexus between URB and CE. The result shows that URB has a significant impact on the CE in seven countries, namely Brazil, China, India, Malaysia, Mexico, the Philippines and Thailand. On the other hand, CE Granger-causes URB only in South Korea. The results are consistent with the stochastic differential model, which states that CE is the combination of the rising urban population and economic activities. To minimize CE, these countries should implement energy efficiency policies, reduce the use of fossil fuels, move toward hydel and solar resources and emphasize the conservation of forests. A balanced approach between rural and urban areas by establishing industrial units can generate the same opportunities and will discourage rural–urban migration. Therefore, these governments should have proper urban planning, which can limit the abrupt influx from rural areas.
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