The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors?

Murshed, M and Ahmed, Rizwan and Kumpamool, C and Bassim, Mohga and Elheddad, Mohamed (2021) The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbors? Business Strategy and the Environment. ISSN 1099-0836

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Official URL: https://onlinelibrary.wiley.com/doi/10.1002/bse.28...

Abstract

Improving environmental quality across South Asia has become one of the utmost important policy agendas of the concerned governments. The susceptibility of the majority of the South Asian countries to multifaceted climate change adversities has motivated the need to identify the factors that can function to ensure environmental sustainability within this region. Although several studies have highlighted the importance of globalization and cleaner energy use in tackling the environmental woes of the South Asian countries, very little is known regarding the impacts of regional trade and renewable energy transition in this regard. Hence, this paper aims to scrutinize the effects of enhancing intra-regional trade integration and undergoing renewable energy transition on per capita carbon dioxide emissions in the context of six South Asian nations between 1990 and 2016. Besides, the impacts of economic growth, financial development, and urbanization on carbon dioxide emissions are also examined. The results from the recently developed cross-sectionally augmented autoregressive distributed lag regression approach, accounting for cross-sectional dependency and slope heterogeneity issues, reveal that facilitating trade among the South Asian neighbors reduces carbon emissions both in the short-and long run. Moreover, enhancing the share of renewable energy in the aggregate energy consumption figures is also found to reduce carbon dioxide emissions in both the short-and long-run. Furthermore, both regional trade integration and renewable energy transition are found to jointly reduce carbon dioxide emissions in South Asia. The results also authenticate the existence of the environmental Kuznets curve hypothesis while financial development and urbanization are found to boost carbon dioxide emissions only in the long run. Hence, the findings from this study impose key policy takeaways concerning environmental sustainability within South Asia.

Item Type: Article
Additional Information: Paper accepted 26 June 2021
Uncontrolled Keywords: intra-regional trade; regional integration; CO2 emissions; renewable energy; South Asia
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HA Statistics
Divisions: School of Humanities > Economics and International Studies
Depositing User: Mohga Bassim
Date Deposited: 29 Jul 2021 14:49
Last Modified: 29 Jul 2021 14:49
URI: http://bear.buckingham.ac.uk/id/eprint/517

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