Environmental degradation has globally established its term as an eco- nomic concern, the foremost of which is driven by CO2 emissions, prominently in the Asian region due to their varying levels of developmental growth. The Environmental Kuznets Curve (EKC) theory signifies that increases in GDP per capita lead to a reduction in pollutant emissions, guiding policies into establishing regulations that improve aggregate income. Other factors may exist as contributors towards the mitigation of such environmental complications, and various studies have rendered the validity of the EKC insignificant. The study investigates 12 Asian countries in 4 clusters of development, Very High, High, Medium and Low, measured through the Human Development Index (HDI) and examined by their conformity to the EKC theory. Regression analysis and statistical hypothesis testing are utilized to empirically determine whether GDP per capita significantly impacts CO2 emissions, and whether there exists any plausible clause depending on the stage of development. Results indicated that the Very High and High groups were significantly relevant in validating the EKC for every country, despite Singapore’s confliction with multicollinearity, extending weak regressive outcomes. However, the Medium and Low clusters found Nepal and Afghanistan opposing the EKC theory and concluding statistical insignificancy, so that advancements in GDP per capita increased CO2 emissions instead. Hence, policymaking may regard various other factors to achieve environmental sustainability that include GDP but aren’t solely dependent on it to improve degradation.

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Environmental Kuznets Curve and CO2 Emissions in the Asian Region: A Cross-Country Analysis

  • Sarah Imran,
  • Hoor Mohamed,
  • Rawan Mohamed,
  • Wadeeah Mubarak

摘要

Environmental degradation has globally established its term as an eco- nomic concern, the foremost of which is driven by CO2 emissions, prominently in the Asian region due to their varying levels of developmental growth. The Environmental Kuznets Curve (EKC) theory signifies that increases in GDP per capita lead to a reduction in pollutant emissions, guiding policies into establishing regulations that improve aggregate income. Other factors may exist as contributors towards the mitigation of such environmental complications, and various studies have rendered the validity of the EKC insignificant. The study investigates 12 Asian countries in 4 clusters of development, Very High, High, Medium and Low, measured through the Human Development Index (HDI) and examined by their conformity to the EKC theory. Regression analysis and statistical hypothesis testing are utilized to empirically determine whether GDP per capita significantly impacts CO2 emissions, and whether there exists any plausible clause depending on the stage of development. Results indicated that the Very High and High groups were significantly relevant in validating the EKC for every country, despite Singapore’s confliction with multicollinearity, extending weak regressive outcomes. However, the Medium and Low clusters found Nepal and Afghanistan opposing the EKC theory and concluding statistical insignificancy, so that advancements in GDP per capita increased CO2 emissions instead. Hence, policymaking may regard various other factors to achieve environmental sustainability that include GDP but aren’t solely dependent on it to improve degradation.