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Are globalization, urbanization, and energy consumption cause carbon emissions in SAARC region? New evidence from CS-ARDL approach

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Abstract

This study examines the impact of energy consumption, urbanization, and globalization on environmental degradation proxied by carbon emissions (CO2) in the South Asian Association for Regional Cooperation (SAARC) countries, namely Sri Lanka, Pakistan, Maldives, Nepal, Bhutan, Bangladesh, and India using data over the period 1990–2018. The cross-sectional autoregressive distributed lag (CS-ARDL), pooled mean group (PMG), and Dumitrescu and Hurlin (D-H) Granger causality techniques are employed for the empirical analysis. First and second-generation panel unit root tests are used to determine the stationary level of all data series which reveals mixed order of integration. The empirical findings show that urbanization, gross domestic product (GDP) per capita income, energy consumption, industrial growth, globalization, and financial development cause CO2 emissions, while the other variables, namely arable land and innovation, put negative effects on CO2 emissions. Moreover, the D-H heterogeneous test results exhibit that bi-directional relationship exists between CO2 and arable land, urbanization, industrial growth, and financial development, while a unidirectional causality exists between CO2 emissions and GDP per head income. These findings suggest that planned urbanization, investment in renewable energy sources, and effective strategies regarding the economic and financial integration with the global economies are required for a clean and green environment.

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Data availability

The data used in this study is openly available. Source of dataset is provided in Table 1.

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Authors and Affiliations

  1. Department of Economics, Faculty of Business & Economics, Abdul Wali Khan University Mardan, Khyber Pakhtunkhwa, Pakistan

    Muhammad Azam, Ijaz Uddin, Saleem Khan & Muhammad Tariq

  2. School of Economics, Finance & Banking, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia

    Muhammad Azam

Authors
  1. Muhammad Azam
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  2. Ijaz Uddin
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  3. Saleem Khan
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  4. Muhammad Tariq
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Contributions

Muhammad Azam contributed to the main conceptual idea, model development, and implementation of the research. Ijaz Uddin and Saleem Khan worked out all of the technical details, analyzed data, and interpreted the results. With input from all authors, Muhammad Tariq has written literature review and formatted the entire paper. In addition, the final manuscript has been read and approved by all authors.

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Correspondence to Saleem Khan.

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Azam, M., Uddin, I., Khan, S. et al. Are globalization, urbanization, and energy consumption cause carbon emissions in SAARC region? New evidence from CS-ARDL approach. Environ Sci Pollut Res 29, 87746–87763 (2022). https://doi.org/10.1007/s11356-022-21835-1

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