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Energy consumption to environmental degradation, the growth appetite in SAARC nations

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  • Rehman, Mobeen Ur
  • Rashid, Mushab

Abstract

This study aims to investigate the role of energy consumption on environmental degradation under multivariate framework for emerging and frontier Asian markets. We have included CO2 emission, GDP and population growth with energy consumption as additional determinants of environmental degradation. The application of panel unit root test suggests non-stationary properties of included variables however we report significant co-integration among these variables. Furthermore, presence of Environmental Kuznets Curve (EKC) was detected using the application of fully modified OLS and dynamic OLS. Level of energy consumption tends to increase environmental degradation thereby confirming the Pollution Haven Hypothesis (PHH). Bidirectional causality was also observed between CO2 emission and economic growth. Results of this study are variable to different countries and present sound economic policy implications for the improvement of environmental standards.

Suggested Citation

  • Rehman, Mobeen Ur & Rashid, Mushab, 2017. "Energy consumption to environmental degradation, the growth appetite in SAARC nations," Renewable Energy, Elsevier, vol. 111(C), pages 284-294.
    • Handle: RePEc:eee:renene:v:111:y:2017:i:c:p:284-294
    DOI: 10.1016/j.renene.2017.03.100
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    More about this item

    Keywords

    Environmental degradation; Energy consumption; Economic growth;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • F01 - International Economics - - General - - - Global Outlook
    • F3 - International Economics - - International Finance
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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