Industrial practices and quality of environment: evidence for Asian economies

Nabila Asghar (), Muhammad Anwar (), Hafeez Rehman and Saba Javed ()
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Nabila Asghar: University of Education Bank Road Campus
Saba Javed: University of Agriculture Faisalabad

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2020, vol. 22, issue 8, No 30, 7807-7829

Abstract: Abstract The contemporary study takes under consideration some countries of Asia to find the co-integration and causal association between industrial growth and environmental degradation. To achieve this object, the data have been collected from 1986 to 2015. Study incorporates panel autoregressive distributed lag model and Pedroni co-integration method. All the variables are found to be stationary at first difference. In order to explore long-run relationship, we include the estimates of pool mean group. Findings demonstrate that industrialization, energy consumption and trade volume deteriorate the quality of environment in long-run. However, short-run results indicate unidirectional causality running from industry value added per capita to CO2 emission, while energy consumption exhibits bidirectional causality with CO2 emission. The study asserts that there is need of hour to formulate and execute efficient environmental-friendly policies, specifically in industrial sector.

Keywords: CO2 emission; Industrialization; Autoregressive distributed lag model; Energy consumption; causality (search for similar items in EconPapers)
JEL-codes: P18 Q19 Q20 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10668-019-00547-6

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