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Economic growth and methane emission: testing the EKC hypothesis in ASEAN economies

Rana Muhammad Adeel‐FarooqDepartment of Economics, University of Sahiwal, Sahiwal, PakistanJimoh Olajide RajiDepartment of Finance, SEFB, Universiti Utara Malaysia, Sintok, MalaysiaBosede Ngozi AdeleyeDepartment of Economics and Development Studies, Covenant University, Ota, Nigeria
2020en
ABI

Аннотация

Purpose The purpose of this study is to analyze the Environmental Kuznets Curve (EKC) hypothesis within the methane (CH 4 ) emission–economic growth nexus among the six Association of Southeast Asian Nations (ASEAN) countries from 1985 to 2012. Design/methodology/approach The study employs dynamic panel data estimation approaches such as mean group (MG) and pooled MG (PMG) techniques. Findings The findings reveal that the EKC hypothesis for the CH 4 emission in these economies proves to be valid. In other words, economic growth causes CH 4 emissions to decrease. Nevertheless, energy consumption is deteriorating the environment by enhancing CH 4 emissions in these countries. Originality/value The ASEAN region has experienced substantial economic growth over the previous few decades. Nevertheless, pollution has also increased manifolds in this region. Methane is a more potent greenhouse gas (GHG) as compared to carbon dioxide (CO 2 ) and a major source of socio-economic issues in the ASEAN region. This study is the first in the existing literature on the EKC hypothesis examining the role of economic growth on CH 4 emissions in the selected ASEAN countries. The outcomes of this study could be really beneficial for the policymakers in this region regarding sustainability and economic development.

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