Defining the role of renewable energy, economic growth, globalization, energy consumption, and population growth on PM2.5 concentration: evidence from South Asian countries.

Abstract

Rapid industrialization and economic development in South Asia (SA) caused serious air pollution-related issues. Air pollutants, particularly fine particulate matter (PM2.5), have negative effects on health, instigating widespread concern. The current study is an attempt to analyze the impact of non-renewable energy (NRE), globalization (GLO), GDP, renewable energy (RE), and population (POP) on PM2.5 concentration in SA from 1998 to 2020. In doing so, this study incorporated advanced and robust econometric techniques, i.e., Pesaran (Economet Rev 34(6-10), 1089-1117, 2015), to check the cross-sectional dependency, and the unit root presence checked through Cross-sectional Im, Pesaran, and Shin (CIPS) and Cross-sectionally Augmented Dickey-Fuller (CADF) unit root tests. Moreover, the long and short-run association among the selected variables was analyzed through Westerlund and Edgerton (Econ Lett 97(3), 185-190, 2007), cointegration test, and cross-sectional augmented ARDL (CS-ARDL). The empirical results indicate that the panel was cross-sectionally correlated, stationary at the first difference, and co-integrated in the long run. Moreover, the CS-ARDL model indicates a positive association between GDP and PM2.5 concentration. Similarly, NRE and POP contribute significantly to increasing the PM2.5 concentration in SA. However, RE and GLO play an important role to decrease the PM2.5 concentration in SA.