Economic growth and methane emission: testing the EKC hypothesis in ASEAN economies

The purpose of this study is to analyze the Environmental Kuznets Curve (EKC) hypothesis within the methane (CH₄) emission–economic growth nexus among the six Association of Southeast Asian Nations (ASEAN) countries from 1985 to 2012.

The study employs dynamic panel data estimation approaches such as mean group (MG) and pooled MG (PMG) techniques.

The findings reveal that the EKC hypothesis for the CH₄ emission in these economies proves to be valid. In other words, economic growth causes CH₄ emissions to decrease. Nevertheless, energy consumption is deteriorating the environment by enhancing CH₄ emissions in these countries.

The ASEAN region has experienced substantial economic growth over the previous few decades. Nevertheless, pollution has also increased manifolds in this region. Methane is a more potent greenhouse gas (GHG) as compared to carbon dioxide (CO₂) and a major source of socio-economic issues in the ASEAN region. This study is the first in the existing literature on the EKC hypothesis examining the role of economic growth on CH₄ emissions in the selected ASEAN countries. The outcomes of this study could be really beneficial for the policymakers in this region regarding sustainability and economic development.