Determinants of Carbon Emission- A Study in South Asian Countries

Abstract

The rapid economic growth of South Asian countries, coupled with rising populations, has led to an increasing demand for energy, thereby posing significant challenges for sustainable development. This paper explores the importance of sustainable energy development in South Asia, highlighting its critical role in ensuring economic stability, environmental protection, and social equity. The United Nations has underscored this through its UNFCCC 2016 targets, transitioning from the Millennium Development Goals to the broader Sustainable Development Goals, with a heightened focus on mitigating climate change. In this context sustainable energy development is very important. This study focuses on the sustainable energy development status of South Asian Association for Regional Cooperation (SAARC) countries—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Utilizing 23 years of data (2000-2022), we employed Panel Data Analysis to investigate the determinants influencing carbon intensity in these nations. Our findings reveal that energy intensity, per capita renewable energy consumption and access to electricity significantly increase carbon intensity. Conversely, higher per capita income, a greater share of renewable energy in total consumption and increased per capita energy generation from fossil fuels correlate with a significant reduction in carbon intensity. The results suggest that enhanced collective efforts among SAARC countries are imperative for advancing sustainable renewable energy development.