The nexus between carbon emissions, poverty, economic growth, and logistics operations-empirical evidence from southeast Asian countries.

Abstract

This research examines the role of poverty and logistical operations under the circumstance of environmental deterioration with panel data of ASEAN states from 2007 to 2017. The system-generalized method of moments (GMM) was adopted due to the presence of endogeneity. The results indicate that poverty and logistical operations have significant and positive relationship with greater environmental degradation. Because poor people are not skilled, they have to consume natural resources in original and unsustainable way for their survival and profits, which results in greater level of deforestation. On another hand, lacking fuel-efficient/green vehicles and green practices in logistical operations of ASEAN countries, logistics activities mainly depend on fossil fuel consumption, which generates greater carbon emission, methane, and greenhouse emissions that can directly damage the environment and become a primary source of climate change. Therefore, reduction in environmental degradation can be achieved through reduction in poverty and encouraging renewable energy and green practices in logistical operations. In addition, this study also provides detailed policy implications to regulatory bodies and corporate sector in order to improve environmental sustainability through adoption of green practices and reduction in poverty.