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Urbanization and carbon emission: causality evidence from the new industrialized economies

Author

Listed:
  • Khalid Khan

    (Qilu University of Technology)

  • Chi-Wei Su

    (Qingdao University)

  • Ran Tao

    (Qingdao Municipal Center for Disease Control and Preventation)

  • Lin-Na Hao

    (Liaocheng University)

Abstract

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.

Suggested Citation

  • Khalid Khan & Chi-Wei Su & Ran Tao & Lin-Na Hao, 2020. "Urbanization and carbon emission: causality evidence from the new industrialized economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7193-7213, December.
    • Handle: RePEc:spr:endesu:v:22:y:2020:i:8:d:10.1007_s10668-019-00479-1
    DOI: 10.1007/s10668-019-00479-1
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    More about this item

    Keywords

    Urbanization; Carbon emission; Climate change; Bootstrap causality;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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