Revisiting the impacts of globalization, renewable energy consumption, and economic growth on environmental quality in South Asia
DOI:
https://doi.org/10.47654/v26y2022i3p75-98Keywords:
Globalization, Renewable energy consumption, Economic growth, Environmental quality, Sustainable development, South AsiaAbstract
Purpose: This study empirically analyzes the impact of globalization, renewable energy consumption, and economic growth on environmental quality in five South Asian developing economies. For this purpose, we used a panel data from 1990 to 2014 for the mentioned countries and employed latest econometric techniques for the empirical analysis.
Study design/methodology/approach: We perform a cross-sectional dependency (CD) test and employ a second-generation panel unit root (CIPS and CADF) tests. Further, in this study, we conduct different panel cointegration tests. Finally, we estimate the long-run association between dependent and independent variables by using both Fully Modified-OLS (FMOLS) and Dynamic-OLS (DOLS).
Findings: The study's empirical results confirm that both globalization and economic growth increase CO2 emissions in South Asian developing economies. On the other hand, renewable energy consumption significantly improves environmental quality. Moreover, this study also confirms that these countries have an inverted U-shaped environmental Kuznets curve (EKC).
Originality/value: The outcomes of this study provide the important policy implications for the governments of South Asian countries for sustainable development in the region.
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