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.

Ã, F. H. (2009). An econometric study of CO 2 emissions, energy consumption, income and foreign trade in Turkey, 37, 1156–1164. https://doi.org/10.1016/j.enpol.2008.11.012. 

Abbasi, F., & Riaz, K. (2016). CO 2 emissions and financial development in an emerging economy : An augmented VAR approach. Energy Policy, 90, 102–114. https://doi.org/10.1016/j.enpol.2015.12.017.

Acquaye, A., Feng, K., Oppon, E., Salhi, S., Ibn-mohammed, T., Genovese, A., & Hubacek, K. (2016). Measuring the environmental sustainability performance of global supply chains : A multi-regional input-output analysis for carbon, sulfur oxide and water footprints. Journal of Environmental             Management. https://doi.org/10.1016/j.jenvman.2016.10.059.

Afridi, M. A., Kehelwalatenna, S., Naseem, I., & Tahir, M. (2019). Per capita income, trade openness, urbanization, energy consumption, and CO 2 emissions : an empirical study on the SAARC Region.

Ahmad, W., & Majeed, M. T. (2019). The impact of renewable energy on carbon dioxide emissions : an empirical analysis of selected South Asian countries, 9(4), 527–534.

Ahmed, K. (2016). Revisiting the emissions-energy-trade nexus : evidence from the newly industrializing countries. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-015-6018-x

Ali, H. S., Abdul-rahim, A. S., & Ribadu, M. B. (2016). Urbanization and carbon dioxide emissions in Singapore : evidence from the ARDL approach. Environmental Science and Pollution Research.

https://doi.org/10.1007/s11356-016-7935-z

Al-mulali, U., & Ozturk, I. (2015). The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (the Middle East and North African ) region. Energy, 84, 382–389. https://doi.org/10.1016/j.energy.2015.03.004.

Al-mulali, U., Normee, C., Che, B., & Gholipour, H. (2012). Exploring the bidirectional long-run relationship between urbanization, energy consumption, and carbon dioxide emission. Energy, 46(1), 156–167. https://doi.org/10.1016/j.energy.2012.08.043.

Alvarez, I. G.-, Segura, L., & Martínez-ferrero, J. (2014). Carbon emission

reduction : the impact on the financial and operational performance of international companies. https://doi.org/10.1016/j.jclepro.2014.08.047.

Ameer, K. M. and A. (2018). Effect of economic growth, trade openness, Urbanization, and technology on the environment of Asian emerging economies. https://doi.org/10.1108/MEQ-05-2018-0087.

Amri, F. (2017). Carbon dioxide emissions, output, and energy consumption categories in Algeria. https://doi.org/10.1007/s11356-017-8984-7.

Aydin, C., & Esen, Ö. (2017). SC. https://doi.org/10.1016/j.eneco.2017.11.010

Baek, J., & Pride, D. (2014). On the income – nuclear energy – CO 2 emissions nexus revisited. Energy Economics, 43, 6–10.

https://doi.org/10.1016/j.eneco.2014.01.015

Bajpai, A. (2018). Child rights in India: Law, policy, and practice. Oxford University Press.

Bekhet, H. A., & Othman, N. S. (2017). Impact of urbanization growth on

Malaysia CO2 emissions : Evidence from the dynamic relationship. Journal of Cleaner Production, 154(June), 374–388.

https://doi.org/10.1016/j.jclepro.2017.03.174

Boamah, K. B., Du, J., Bediako, I. A., Boamah, A. J., Abdul-rasheed, A. A., & Owusu, S. M. (2017). Carbon dioxide emission and economic growth of

China — the role of international trade. https://doi.org/10.1007/s11356017-8955-z

Boutabba, M. A. (2014). The impact of financial development, income, energy and trade on carbon emissions : Evidence from the Indian economy. Economic Modelling, 40(2014), 33–41. https://doi.org/10.1016/j.econmod.2014.03.005.

BP, London, 2015. (2015). No Title. London. Retrieved from BP, B. P. (2015). BP statistical review of world energy. BP, London.

Bui, M., Adjiman, C. S., Bardow, A., Anthony, E. J., Boston, A., Brown, S., ... & Hallett, J. P. (2018). Carbon capture and storage (CCS): the way forward. Energy & Environmental Science, 11(5), 1062-1176.

Cetin, M., & Ecevit, E. (2015). Urbanization, Energy Consumption and CO2 Emissions in Sub-Saharan Countries : A Panel Cointegration and Causality Analysis (January). https://doi.org/10.15640/jeds.v3n2a7.

Chandr, V. (2011). The CO 2 emissions-income nexus : Evidence from rich countries. Energy Policy, 39(3), 1228–1240. https://doi.org/10.1016/j.enpol.2010.11.050.

Chiu, Y. (2016). Carbon dioxide, income and energy: Evidence from a nonlinear model. Energy Economics. https://doi.org/10.1016/j.eneco.2016.11.022.

Corruption, Trade Openness, and Environmental Quality : A Panel Data Analysis of Selected South Asian Countries. (2007), (Winter), 673–688.

Dhiab, L. Ben, & Dkhili, H. (2019). Impact of income, trade, urbanization, and financial development on CO2 emissions in the GCC countries International Journal of Advanced and Applied Sciences, (September). https://doi.org/10.21833/ijaas.2019.07.005.

Dogan, E., & Seker, F. (2016). The influence of real output, renewable and nonrenewable energy, trade and financial development on carbon emissions in the top renewable energy countries. Renewable and Sustainable Energy Reviews, 60, 1074–1085. https://doi.org/10.1016/j.rser.2016.02.006.

Dogan, E., & Turkekul, B. (2015). RESEARCH ARTICLE CO 2 emissions, real output, energy consumption, trade, urbanization and financial development : testing the EKC hypothesis for the USA. https://doi.org/10.1007/s11356-015-5323-8.

Doygun, H., & Alphan, H. (2006). Monitoring urbanization of Iskenderun, turkey, and its negative implications, 145–155.

https://doi.org/10.1007/s10661-006-2524-0

Economic, W., & Surveys, F. (2013). World Economic and Financial Surveys World Economic Outlook April 2013 Hopes, Realities, Risks.

Ehigiamusoe, K. U., & Lean, H. H. (2019). Effects of energy consumption, economic growth, and financial development on carbon emissions :

evidence from heterogeneous income groups, 22611–22624.

Elden, T. H. M. S. (2001). International Trade Intensity and Carbon Emissions : A Cross-Country, 10(1).

Fareed, Muhammad and Rizwan Nazir &. Zeehan. 2018. Financial development, Income, Trade and Urbanization on CO2 Emissions: New Evidence. 9:17–37.

Elden, T. H. M. S. (2001). International Trade Intensity and Carbon Emissions :

A Cross-Country, 10(1).

Faiz-Ur-Rehman, Ali, A., & Nasir, M. (2007). Corruption, trade openness, and environmental quality: A panel data analysis of selected South Asian countries. The Pakistan Development Review, 673-688.

Fan, H., & Hossain, I. (2018). Technological Innovation, Trade Openness, CO 2

Emission and Economic Growth : Comparative Analysis between China and India, 8(6), 240–257.

Farhani, S., & Ozturk, I. (2015). Causal relationship between CO 2 emissions, real GDP, energy consumption, financial development, trade openness, and Urbanization in Tunisia. https://doi.org/10.1007/s11356-015-4767-1.

Ferra, P. (2003). A new environmental Kuznets curve Analysis? Relationship between direct material input and income per capita : evidence from industrialized countries, 46, 217–229. https://doi.org/10.1016/S09218009(03)00123-X

Friedl, B., & Getzner, M. (2003). Determinants of CO 2 emissions in a small open economy, 45, 8–9. https://doi.org/10.1016/S0921-8009(03)00008-9.

Grunewald, N., Klasen, S., Martínez-zarzoso, I., & Muris, C. (2017). The

Trade-off Between Income Inequality and Carbon Dioxide Emissions. Ecological Economics, 142, 249–256. https://doi.org/10.1016/j.ecolecon.2017.06.034.

Hafiz, M, M. M. (2016). The Impact of Urbanization and Energy Consumption on CO 2 Emissions in The Impact of Urbanization and Energy Consumption on CO 2 Emissions in South Asia, (June 2018).

Hassan, K., & Salim, R. (n.d.). Population aging, income growth and CO 2 emission : Empirical evidence from high-income OECD countries Population aging, income growth and CO 2 emission : Empirical evidence from high-income OECD countries. Hepburn, C., Bowen, A., & No, W. P. (2012). Prosperity with growth : Economic growth, climate change and environmental limits October 2012 Centre for Climate Change Economics and Policy, (109).

Hundie, S. K. (2018). Turkish Journal of Agriculture - Food Science and Technology Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia : Evidence from Cointegration and Causality Analysis, 6(6), 699–709.

In, U., & Africa, S.-S. (2019). Economic Growth, CO2 Emission, Energy consumptions and urbanization in Sub-Saharan Africa (April).

Jiang, C., & Ma, X. (2019). The Impact of Financial Development on Carbon Emissions : A Global Perspective.

K., Ozturk, I. & Sohag, K. (2017). The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO 2 emissions in Kuwait, 2015, 1–30.

Kamran, M., Teng, J., Imran, M., & Owais, M. (2019). Science of the Total Environment Impact of Globalization, economic factors and energy consumption on CO 2 emissions in Pakistan. Science of the Total Environment, 688, 424–436. https://doi.org/10.1016/j.scitotenv.2019.06.065.

Kasman, A., & Selman, Y. (2015). CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries : A panel data analysis, 44, 2014–2016.

Khan, M. K. (2019). Effect of energy consumption and economic growth on carbon dioxide emissions in Pakistan with dynamic ARDL simulations approach, (2018).

Kivyiro, P., & Arminen, H. (2014). Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment : Causality analysis for Sub-Saharan Africa. Energy, 74, 595–606.

https://doi.org/10.1016/j.energy.2014.07.025

Li, K., & Lin, B. (2015). Impacts of Urbanization and industrialization on energy consumption / CO 2 emissions : Does the level of development matter ?, 52, 1107–1122. https://doi.org/10.1016/j.rser.2015.07.185.

Li, L., Hong, X., Tang, D., & Na, M. (2016). GHG Emissions, Economic Growth and Urbanization : A Spatial Approach, (x). https://doi.org/10.3390/su8050462

Liu, B., Tian, C., Li, Y., Song, H., & Ma, Z. (2018). Research on the effects of urbanization on carbon emissions efficiency of urban agglomerations in China. Journal of Cleaner Production, 197, 1374-1381.

Liu, B., Tian, C., Li, Y., Song, H., & Zhanxin, M. (2018). Research on the Effects of Urbanization on Carbon Emissions Efficiency of Urban Agglomerations in China. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2018.06.295.

Liu, Y., Zhang, M., & Liu, R. (2020). The Impact of Income Inequality on Carbon Emissions in China : A Household-Level Analysis, 1–22.

Loughner, C. P., Allen, D. J., Zhang, D. L., Pickering, K. E., Dickerson, R. R., & Landry, L. (2012). Roles of urban tree canopy and buildings in urban heat island effects: Parameterization and preliminary results. Journal of Applied Meteorology and Climatology, 51(10), 1775-1793.

Lu, W. (2018). The impacts of information and communication technology, energy consumption, financial development, and economic growth on carbon dioxide emissions in 12 Asian countries.

Ma, X., Ge, J., & Wang, W. (2017). and carbon dioxide emissions and the policy implications for China : a co-integrated vector error correction ( VEC ) analysis. Natural Hazards. https://doi.org/10.1007/s11069-0172807-5.

Mcconnell, K. E., & Mcconnell, K. E. (2015). and Development Economics : Income and the demand for environmental quality Income and the demand for environmental quality, (March 2001), 383–399. https://doi.org/10.1017/S1355770X9700020X.

Muhammad, Q., Hye, A., & Kumar, A. (2012). Munich Personal RePEc Archive Economic Growth, Energy Consumption, Financial Development, International Trade and CO2 Emissions in Indonesia.

Muni, A. A. and K. (2016). No Title Effect of Economic Growth, Trade Openness, Urbanization, and Technology on Environment of Selected Asian Countries, (74571).

Musai, M., & Mohammadi, M. (2014). Relationship between Economic Growth, Trade, and Environment : Evidence from D8 Countries, 4(2), 320– 326. https://doi.org/10.6007/IJARAFMS/v4-i2/895.

Noomen, A., Hammoudeh, S., Khuong, D., & Ricardo, J. (2015). On the relationships between CO 2 emissions, energy consumption and income : The importance of time variation. Energy Economics, 49, 629–638. https://doi.org/10.1016/j.eneco.2015.02.007.

Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth : What causes what in MENA countries ☆. Energy Economics, 48, 242–252. https://doi.org/10.1016/j.eneco.2015.01.008.

Ouyang, X., & Lin, B. (2016). Carbon dioxide ( CO 2 ) emissions during Urbanization : A comparative study between China and Japan. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2016.12.102.

Ozturk, I. (2017). The dynamic relationship between agricultural sustainability and food-energy-water poverty in a panel of selected Sub-Saharan African

Countries.        Energy             Policy, 107(April),       289–299.

https://doi.org/10.1016/j.enpol.2017.04.048

Ozturk, U. A. I. (2015). The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe. Natural Hazards. https://doi.org/10.1007/s11069-015-1865-9.

Park, Y., Meng, F., & Baloch, M. A. (2018). The effect of ICT, financial development, growth, and trade openness on CO 2 emissions : an empirical analysis.

Rahman, M. Z. (2013). Relationship between Trade Openness and Carbon Emission : A Case of Bangladesh, 1(4), 126–134.

Ravallion, M., Heil, M., & Jalan, J. (1997). A less poor world, but a hotter one ? Carbon emissions, economic growth and income inequality.

Rehman, U. (2016). Munich Personal RePEc Archive What drives carbon dioxide emissions in the long-run ? Evidence from selected South Asian Countries, (75420).

Saboori, B., Sapri, M., & Baba, M. (2014). Economic growth, energy consumption and CO 2 emissions in OECD ( Organization for Economic Co-operation and Development )' s transport sector : A fully modified bidirectional relationship approach. Energy. https://doi.org/10.1016/j.energy.2013.12.048.

Sadeghieh, M. (2016). Financial Development, CO 2 Emissions, Fossil Fuel Consumption and Economic Growth : The Case of, (February).

Sadorsky, P. (2010). The impact of financial development on energy consumption in emerging economies. Energy Policy, 38(5), 2528–2535. https://doi.org/10.1016/j.enpol.2009.12.048.

Saidi, K., & Mbarek, M. Ben. (2016). The impact of income, trade, urbanization, and financial development on CO 2 emissions in 19 emerging economies. https://doi.org/10.1007/s11356-016-6303-3.

Salahuddin, M., Ali, I., Sc, M., Vink, N., & Gow, J. (2018). The effects of

Urbanization and Globalization on CO 2 emissions : evidence from the Sub-Saharan Africa ( SSA ) countries, (Navarro 1998).

Sasana, H., & Aminata, J. (2019). Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission : Indonesian Case Studies, 9(2), 117–122.

Saud, S., Chen, S., & Haseeb, A. (2018). Impact of financial development and

economic growth on environmental quality : an empirical analysis from Belt and Road Initiative ( BRI ) countries.

Saud, S., Chen, S., Haseeb, A., Khan, K., & Imran, M. (2019). The nexus between financial development, income level, and the environment in Central and Eastern European Countries : a perspective on Belt and Road Initiative Agency for International Development.

Science, E., Dogan, E., & Turkekul, B. (2016). CO 2 emissions, real output, energy consumption, trade, urbanization and financial development : testing the EKC hypothesis for the USA, (January). https://doi.org/10.1007/s11356-015-5323-8.

Shaari, M. S., & Karim, Z. A. (2020). sustainability The Effects of Energy

Consumption and National Output on CO 2 Emissions : New Evidence from OIC Countries Using a Panel ARDL Analysis, 1–12.

Shahbaz, M., Loganathan, N., Tasneem, A., Ahmed, K., & Ali, M. (2016a).

How urbanization affects CO 2 emissions in Malaysia ? The application of STIRPAT model. Renewable and Sustainable Energy Reviews, 57, 83–93. https://doi.org/10.1016/j.rser.2015.12.096.

Shahbaz, M., Nasreen, S., Ahmed, K., & Hammoudeh, S. (2016b). Trade openness-carbon emissions nexus: The importance of turning points of trade openness for country panels. Energy Economics. https://doi.org/10.1016/j.eneco.2016.11.008.

Sheng, P., & Guo, X. (2016). The Long-run and Short-run Impacts of Urbanization on Carbon Dioxide Emissions. Economic Modelling, 53, 208–215. https://doi.org/10.1016/j.econmod.2015.12.006.

Shunsuke, M. (n.d.). RIETI Discussion Paper Series 08-E-013 Does Trade Liberalization Reduce Pollution Emissions ?

Solarin, S. A., & Lean, H. H. (2016). Natural gas consumption, income, Urbanization, and CO 2 emissions in China and India. Environmental Science and Pollution Research, 23(18), 18753-18765.

Sources, E., & Economics, P. B. (2018). Analyzing the causalities between economic growth, financial development, international trade, tourism expenditure, and / on the CO2 emissions in Greece, (March 2017). https://doi.org/10.1080/15567249.2016.1263251.

Sun, H., Clottey, S. A., Geng, Y., & Fang, K. (2019). Trade Openness and Carbon Emissions : Evidence from Belt and Road Countries, 1–20.

Tiwari, A. K., Shahbaz, M., & Hye, Q. M. A. (2013). The environmental Kuznets curve and the role of coal consumption in India: co-integration and causality analysis in an open economy. Renewable and Sustainable Energy Reviews, 18, 519-527.

Tu, S. (2009). The relationship between income and environment in Turkey : Is there an environmental Kuznets curve ?, 37, 861–867. https://doi.org/10.1016/j.enpol.2008.09.088.

Wang, Y., Chen, L., & Kubota, J. (2015). The relationship between urbanization, energy use and carbon emissions : evidence from a panel of Association of Southeast Asian Nations ( ASEAN ) countries. Journal of Cleaner Production, 1–7. https://doi.org/10.1016/j.jclepro.2015.06.041.

Wolde-rufael, Y., & Idowu, S. (2016). Income distribution and CO 2 emission :

A comparative analysis for China and India. Renewable and Sustainable Energy Reviews, (November), 0–1. https://doi.org/10.1016/j.rser.2016.11.149.

Zandi, G., & Haseeb, M. (2019). The Role of Trade Liberalization in Carbon

Dioxide Emission : Evidence From Heterogeneous Panel Estimations, 10(5). https://doi.org/10.5430/ijfr.v10n5p228.

Zhang, C., & Lin, Y. (2012). Panel estimation for urbanization, energy consumption and CO 2 emissions : A regional analysis in China. Energy Policy, 49, 488–498. https://doi.org/10.1016/j.enpol.2012.06.048.

Zhu, H., Yu, W., & Zeng, Z. (2012). Urbanization and CO 2 emissions : A semi-parametric panel data analysis. Economics Letters, 117(3), 848–850. https://doi.org/10.1016/j.econlet.2012.09.001.

Zi, C., Jie, W., & Hong-bo, C. (2015). CO2 emissions and urbanization correlation in China based on threshold analysis. Ecological Indicators. https://doi.org/10.1016/j.ecolind.2015.09.013.

Zubizarreta, E., Dyk, J. Van, & Lievens, Y. (2016). Analysis of Global Radiotherapy Needs and Costs by Geographic Region and Income Level Statement of Search Strategies Used and Sources of Information. Clinical Oncology, 1–9. https://doi.org/10.1016/j.clon.2016.11.011.