WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
A Panel Study of the Environmental Kuznets Curve for Carbon Emissions in ASEAN-5 Countries
Authors: Goh Han Hwa, You Hui Li, Nur Syairah Khan Binti Beram Khan, Tan Su Hong
Abstract: Environmental degradation has now been one of top concerns for scientists, environmentalists, policymakers and people all around the world alike. Carbon dioxide (CO2) is believed to be one of the major components of greenhouse gases that contribute to air pollution and thus global warming and climate change. This research is conducted to investigate the relationship between economic growth and CO2 emissions in ASEAN-5 countries in the presence of foreign direct investment inflow (FDI) and trade openness for the period between 1981 and 2010. In order to carry out the study, various tests are applied such as panel unit root tests, Pedroni panel cointegration test, the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) regressions, as well as panel vector error correction model (PVECM). The results of the study indicate that the relationship between economic growth and CO2 emissions exists in inverted-S shape in both short- and long-run for ASEAN-5 countries after controlling two additional explanatory variables, i.e. FDI inflow and trade openness. In addition, the outcome of this study also offers some fundamental policy recommendations to policymakers.
Keywords: Carbon dioxide emissions, economic growth, Environmental Kuznets curve, ASEAN-5 countries
Pages: 467-473WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 13, 2016, Art. #42