Examining the symmetrical effect of traditional energy resources, industrial production, and poverty lessening on ecological sustainability: Policy track in the milieu of five neighboring Asian economies

Qamar uz Zaman, Yuhuan Zhao, Shah Zaman and Aadil Hameed Shah

Resources Policy, 2023, vol. 83, issue C

Abstract: Adopting the Westerlund, Kao, Pedroni, Fisher cointegration test, pooled mean group (PMG-ARDL) model and Dumitrescu Herlin granger causality method, the penetrating objectives of the current study is to investigate the long-run relationship, dynamical causality and symmetrical effect of each regressor individually, like traditional energy use, lessening of poverty, real exchange rate, and industrial production on environmental sustainability in the longer and smaller run epoch of time in five neighboring (Bangladesh, China, India, Pakistan, and Thailand) Asian economies from 1990 to 2018. Primarily, the estimated results of the study revealed strong evidence of co-integration among study variables. The PMG model's numerical outcomes further indicate that increased use of traditional energy and industrial production adversely influence environmental sustainability. On the contrary, an uplift in the exchange rate and lessening poverty enhances environmental sustainability in the long run. Nevertheless, in a smaller epoch of time, the impact of all the variables has been insignificant on environmental sustainability. Moreover, outcomes of the Dumitrescu Herlin granger causality method reveal uni (bi) direction causality from industrial production and exchange rate (lessening of poverty and traditional energy use) to environmental sustainability. By summing up the discussion, overall calculations of co-integration under four different tests conclude that there is a strong and stable indication of a co-integration relationship among variables. Whereas, under the PMG-ARDL model, traditional energy use & industrial production (exchange rate & lessening of poverty) declines (upsurges) environmental sustainability. These calculations recommend various policy suggestions that environmental sustainability can be achieved in five neighboring economies by replacing traditional energy with modern one, converting old industrial technology with advanced one, and reducing poverty.

Keywords: Environmental sustainability; Traditional energy use; Lessening of poverty; Industrial production; PMG-ARDL; And five neighboring economies (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:83:y:2023:i:c:s0301420723003173

DOI: 10.1016/j.resourpol.2023.103606

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