The causative factors of environmental degradation in South Asia

Abstract

Urbanization, economic growth, and intensity of electricity consumption are the important causative factors of environmental degradation in South Asia. The present study has revealed this while investigating the relationship between the level of CO2 emissions and important economic variables in the context of five South Asian countries. Panel data are used for this study over the period 1974–2017. Panel co-integration tests and the Panel Autoregressive Distributive Lag (PARDL) model are applied for empirical analysis. Robust results of the analysis indicate that urbanization, Gross Domestic Product (GDP) and the intensity of electricity consumption are contributing factors to carbon emissions. Based on the results of the Dumitrescu Hurlin Panel Causality test, it is concluded that there is a bi-directional causal link between urbanization and CO2 emissions and unidirectional causal links from GDP to CO2 emissions, from GDP to urbanization, and from the intensity of electricity consumption to urbanization. This study focuses on planned urbanization, eco-efficient income growth, and sensible use of electricity to control CO2 emissions in this region. Considering the nature of these developing economies in South Asia, collaborative measures and strategic planning are suggested on a regional basis to address the concerns in the above-mentioned areas that minimize carbon emissions and thereby aid sustainable development in this region.