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Industrial practices and quality of environment: evidence for Asian economies

Author

Listed:
  • Nabila Asghar

    (University of Education Bank Road Campus)

  • Awais Anwar

    (The University of Lahore)

  • Hafeez Ur Rehman

    (University of Management and Technology)

  • Saba Javed

    (University of Agriculture Faisalabad)

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.

Suggested Citation

  • Nabila Asghar & Awais Anwar & Hafeez Ur Rehman & Saba Javed, 2020. "Industrial practices and quality of environment: evidence for Asian economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7807-7829, December.
    • Handle: RePEc:spr:endesu:v:22:y:2020:i:8:d:10.1007_s10668-019-00547-6
    DOI: 10.1007/s10668-019-00547-6
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    More about this item

    Keywords

    CO2 emission; Industrialization; Autoregressive distributed lag model; Energy consumption; causality;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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