This research aims to analyze the impact of macroeconomic factors on Carbon Dioxide emissions in South Asia by using the penal data from 1995 to 2018. The issue of Carbon Dioxide emissions is ignored in most South Asian Countries. Secondary data was used to perform the panel analysis. The data was obtained from the World Bank. The use of the ADFunit root test checked the stationarity of variables. Moreover, different econometric techniques - such as Hausman, Correlation, and ordinary least-square tests- were applied to evaluate the impact of the macroeconomic factors on Carbon Dioxide emissions. The results show that income, energy consumption, urbanization, and Carbon Dioxide emissions were positive and statistically significant long-run relationship, and those variables enhance the level of Carbon Dioxide emissions. Whereas trade openness, financial development was negative and insignificant connected with Carbon Dioxide emissions. Hence, the results suggest that trade openness and financial development improve environment quality. The research also filled the existing literature gap in applying the Ordinary Least Square (OLS) technique for South Asian countries to analyze this related issue. Limited studies were available in Carbon Dioxide emissions and were not tested in South Asia, which was a vital issue nowadays.
|Pages||51 - 84|
|Published||June 30, 2021|
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This work is licensed under a Creative Commons Attribution 4.0 International License.