The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies

This study examined the quadratic role of renewable energy and economic growth on environment quality in Asia's five most populous countries: China, India, Indonesia, Pakistan, and Bangladesh. Previous literature has scarcely addressed these economies and ignores the quadratic role of GDP per c...

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Published in:GEOGRAPHICAL JOURNAL
Main Authors: Khan, Saleem; Jehan, Noor; Rauf, Abdur; Nawaz, Fahim; Erum, Naila
Format: Article; Early Access
Language:English
Published: WILEY 2023
Subjects:
Online Access:https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001132870200001
author Khan
Saleem; Jehan
Noor; Rauf
Abdur; Nawaz
Fahim; Erum
Naila
spellingShingle Khan
Saleem; Jehan
Noor; Rauf
Abdur; Nawaz
Fahim; Erum
Naila
The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
Geography
author_facet Khan
Saleem; Jehan
Noor; Rauf
Abdur; Nawaz
Fahim; Erum
Naila
author_sort Khan
spelling Khan, Saleem; Jehan, Noor; Rauf, Abdur; Nawaz, Fahim; Erum, Naila
The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
GEOGRAPHICAL JOURNAL
English
Article; Early Access
This study examined the quadratic role of renewable energy and economic growth on environment quality in Asia's five most populous countries: China, India, Indonesia, Pakistan, and Bangladesh. Previous literature has scarcely addressed these economies and ignores the quadratic role of GDP per capita (GDPPC) and renewable energy (REN) together in a single study. Therefore, using STIRPAT model, we first added the quadratic term of GDPPC and then REN. In both cases, a quantile regression technique is utilised to identify the inclusive relationship between CO2 emissions and determining factors, considering different quantiles (0.25, 0.50, 0.75, 0.90, and 0.95) of CO2 emissions. The findings show that during the annual sample period of 1983-2019, urbanisation, GDPPC, non-renewable energy, and REN all have an impact on CO2 emissions. Urbanisation and REN have nominal effects, with a 1% change in these variables leading to a 0.19% and 0.05% change in CO2 emissions, respectively. Non-renewable energy and GDPPC are found to be main sources of CO2 emissions in the region. GDPPC is positively associated with CO2 emissions across all quantiles, but higher quantiles show a stronger correlation (i.e., GDPPC coefficients vary from 0.26 to 0.66). In addition, the results also revealed that the square term of GDPPC and REN significantly reduces CO2 emissions. This implies that our results support the environmental Kuznets curve (EKC) hypothesis; an inverted U-shaped is established for both GDPPC and REN. These results encourage policy makers to adopt renewable energy that is both growth and environment friendly.
WILEY
0016-7398
1475-4959
2023


10.1111/geoj.12573
Geography

WOS:001132870200001
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001132870200001
title The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
title_short The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
title_full The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
title_fullStr The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
title_full_unstemmed The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
title_sort The troika of energy consumption, economic growth, and CO2 emission: Quantile regression evidences for five Asian economies
container_title GEOGRAPHICAL JOURNAL
language English
format Article; Early Access
description This study examined the quadratic role of renewable energy and economic growth on environment quality in Asia's five most populous countries: China, India, Indonesia, Pakistan, and Bangladesh. Previous literature has scarcely addressed these economies and ignores the quadratic role of GDP per capita (GDPPC) and renewable energy (REN) together in a single study. Therefore, using STIRPAT model, we first added the quadratic term of GDPPC and then REN. In both cases, a quantile regression technique is utilised to identify the inclusive relationship between CO2 emissions and determining factors, considering different quantiles (0.25, 0.50, 0.75, 0.90, and 0.95) of CO2 emissions. The findings show that during the annual sample period of 1983-2019, urbanisation, GDPPC, non-renewable energy, and REN all have an impact on CO2 emissions. Urbanisation and REN have nominal effects, with a 1% change in these variables leading to a 0.19% and 0.05% change in CO2 emissions, respectively. Non-renewable energy and GDPPC are found to be main sources of CO2 emissions in the region. GDPPC is positively associated with CO2 emissions across all quantiles, but higher quantiles show a stronger correlation (i.e., GDPPC coefficients vary from 0.26 to 0.66). In addition, the results also revealed that the square term of GDPPC and REN significantly reduces CO2 emissions. This implies that our results support the environmental Kuznets curve (EKC) hypothesis; an inverted U-shaped is established for both GDPPC and REN. These results encourage policy makers to adopt renewable energy that is both growth and environment friendly.
publisher WILEY
issn 0016-7398
1475-4959
publishDate 2023
container_volume
container_issue
doi_str_mv 10.1111/geoj.12573
topic Geography
topic_facet Geography
accesstype
id WOS:001132870200001
url https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001132870200001
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collection Web of Science (WoS)
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