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Effect of economic growth, trade openness, urbanization, and technology on environment of Asian emerging economies

Kashif Munir (Department of Economics, University of Central Punjab, Lahore, Pakistan)
Ayesha Ameer (Department of Economics, University of Central Punjab, Lahore, Pakistan)

Management of Environmental Quality

ISSN: 1477-7835

Article publication date: 27 July 2018

Issue publication date: 4 September 2018

1498

Abstract

Purpose

The purpose of this paper is to analyze the long-run as well as short-run effect of economic growth, trade openness, urbanization and technology on environmental degradation (sulfur dioxide (SO2) emissions) in Asian emerging economies.

Design/methodology/approach

The study utilizes the augmented STIRPAT model and uses the panel cointegration and causality test to analyze the long-run and short-run relationships. Due to the unavailability of data for all Asian emerging economies, the study focuses on 11 countries, i.e. Bangladesh, Hong Kong, India, Indonesia, Iran, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka and Thailand, and uses balance panel from 1980 to 2014 at annual frequency.

Findings

Results showed that the inverted U-shape hypothesis of the environmental Kuznets curve holds between economic growth and SO2 emissions. While technology and trade openness increases SO2 emissions, urbanization reduces SO2 emissions in Asian emerging economies in the long run. Unidirectional causality flows from urbanization to SO2 emissions and from SO2 emissions to economic growth in the short run.

Practical implications

Research and development centers and programs are required at the government and private levels to control pollution through new technologies as well as to encourage the use of disposed-off waste as a source of energy which results in lower dependency on fossil fuels and leads to reduce emissions.

Originality/value

This study contributes to the existing literature by analyzing the effects of urbanization, economic growth, technology and trade openness on environmental pollution (measured by SO2 emissions) in Asian emerging economies. This study provides the essential evidence, information and better understanding to key stakeholders of environment. The findings of this study are useful for individuals, corporate bodies, environmentalist, researchers and government agencies at large.

Keywords

Citation

Munir, K. and Ameer, A. (2018), "Effect of economic growth, trade openness, urbanization, and technology on environment of Asian emerging economies", Management of Environmental Quality, Vol. 29 No. 6, pp. 1123-1134. https://doi.org/10.1108/MEQ-05-2018-0087

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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