Research Article Open Access

Nexus between CO2 Emission, Energy Consumption and Economic Growth in ASEAN Countries Plus China

Ghulam Mustafa1, Ismail Abd Latif1, Said Zamin Shah1 and Muhammad Khalid Bashir2
  • 1 Universiti Putra Malaysia, Malaysia
  • 2 University of Agriculture, Pakistan

Abstract

This study mainly contributes to test the Environmental Kuznets Curve (EKC) hypothesis using panel data for the ASEAN (Malaysia, Indonesia, Thailand and Philippines) countries plus China. Empirical focus of the study is to examine the nexus between CO2 emission, energy consumption and economic growth. While using panel data for 1971-2008 and applying panel co-integration techniques, the emergent findings of the study showed a positive relationship between per capita GDP and per capita CO2 emission. Further, we found positive effect of energy consumption on CO2 emission in long run. However, the study findings confirmed EKC inverted U-shape hypothesis for the ASEAN-china region after the inclusion of energy consumption. However, it did not hold once only quadratic relationship of per capita income was regressed with CO2 emission. Our long-run Panel Ordinary Least Squares (POLS), Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) estimates also confirmed U-shaped EKC hypothesis for this sample of ASEAN4 countries plus China. The findings of the study suggest the countries under consideration should focus on increasing per capita income to sustain long term economic growth and to reduce pollutants and hence, CO2 emission in the region.

American Journal of Environmental Sciences
Volume 12 No. 4, 2016, 299-307

DOI: https://doi.org/10.3844/ajessp.2016.299.307

Submitted On: 10 February 2016 Published On: 19 August 2016

How to Cite: Mustafa, G., Latif, I. A., Shah, S. Z. & Bashir, M. K. (2016). Nexus between CO2 Emission, Energy Consumption and Economic Growth in ASEAN Countries Plus China. American Journal of Environmental Sciences, 12(4), 299-307. https://doi.org/10.3844/ajessp.2016.299.307

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Keywords

  • ASEAN
  • China
  • CO2 Emission
  • Environmental Kuznets Curve
  • Energy Consumption
  • Panel Co-Integration