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CO2 emissions, urbanisation and economic growth: evidence from Asian countries

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  • Soheila Khoshnevis Yazdi
  • Anahita Golestani Dariani

Abstract

This paper empirically examines the dynamic causal relationships between CO2 emissions, energy consumption, economic growth, trade openness and urbanisation for the period 1980–2014 using the pooled mean group (P.M.G.) approach and panel Granger causality tests for Asian countries. Using panel unit root tests we found that all variables integrated of order 1. From the Pedroni panel cointegration test, there is a long-run relationship among the variables. The results showed that urbanisation increases energy consumption and CO2 emissions. Environmental quality is considered a normal good in the long run. The Granger causality test results support that there is a bidirectional causal relationship between economic growth, urbanisation and CO2 emissions. Consumption is greater than the impact on CO2 emissions in the eastern region and some evidence supports the compact city theory. These results contribute not only to advancing the existing literature, but also deserve special attention from policymakers and urban planners in Asian countries.

Suggested Citation

  • Soheila Khoshnevis Yazdi & Anahita Golestani Dariani, 2019. "CO2 emissions, urbanisation and economic growth: evidence from Asian countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 510-530, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:510-530
    DOI: 10.1080/1331677X.2018.1556107
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    Cited by:

    1. Mohammad Iqbal Irfany & Muhammad Ilham Nurhuda Syam & Daffa Aqomal Haq, 2024. "The Impact of Islamic Finance on Carbon Emissions: Lessons from OIC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 198-205, May.
    2. Jacob Otim & Susan Watundu & John Mutenyo & Vincent Bagire, 2023. "Fossil Fuel Energy Consumption, Economic Growth, Urbanization, and Carbon Dioxide Emissions in Kenya," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 457-468, May.
    3. Allauddin Kakar & Anwar Khan & Akbar Khan, 2024. "Analyzing the Role of Governance, ICT, and Urbanization on Environment in South Asian Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2682-2703, March.
    4. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Liu Geng & Olivier Joseph Abban & Yao Hongxing & Charles Ofori & Joana Cobbinah & Sarah Akosua Ampong & Muhammad Akhtar, 2024. "Do military expenditures impede economic growth in 48 Islamic countries? A panel data analysis with novel approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18725-18759, July.
    6. Kusiyah Kusiyah & Mansoor Mushtaq & Shabbir Ahmed & Ansar Abbas & Mochammad Fahlevi, 2024. "Impact of Urbanization on Environmental Eminence: Moderating Role of Renewable Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 244-257, March.
    7. Rina Astini & Kehkashan Ishrat & Yanto Ramli & Tafiprios Tafiprios & Kwong Wing Chong & Ooi Chee Keong, 2023. "Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 339-347, September.

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