Environmental Kuznets Curve (EKC): Empirically Examined Long Run Association Between Globalization, Financial Development and CO2 Emission for ASEAN Countries

Authors

  • Muhammad Azhar Bhatti The Islamia University of Bahawalpur
  • Faseeh ur Raheem The Islamia University of Bahawalpur, Pakistan
  • Muhammad Ali Zafar The Islamia University of Bahawalpur, Pakistan.

DOI:

https://doi.org/10.52131/jee.2020.0101.0001

Keywords:

ARDL, Carbon Emission, Urbanization, Economic Growth, Energy Consumption, Globalization, Financial Development, ASEAN countries

Abstract

This study mainly inspects the effect of globalization and financial expansion on CO2 emissions in the existence of the EKC (Environmental Kuznets Curve) framework for ASEAN economies, firstly the study employs the cross-sectional dependence econometric test. Results of CADF, CIPS unit root test, LM test, panel Kao Cointegration, Johansen Fisher test and Panel ARDL investigation revealed that (i) the hypothesis of EKC supports in ASEAN economies (ii) financial expansion and consumption of energy subsidize to the Co2 productions while urbanization has positive and globalization negative affiliation with carbon dioxide emissions (iii) the data is heterogeneous and cross-sectional dependence test confirms that there exit cross sections dependency (iv) Co-integration test confirms that variables are co-integrated, urbanization has an order of integration is I(0) and a square of GDP, economic development, globalization, financial expansion, use of energy and CO2 emission have an order of integration is I(1). Moreover, it is recommended that the authorities of ASEAN economies give some special consideration to the globalization level. Since better institutional reforms, institutional quality is vital to upsurge financial development and globalization improved financial growth.

Author Biographies

Muhammad Azhar Bhatti, The Islamia University of Bahawalpur

Visiting Lecturer, Department of Economics

Faseeh ur Raheem, The Islamia University of Bahawalpur, Pakistan

Department of Physics

Muhammad Ali Zafar, The Islamia University of Bahawalpur, Pakistan.

Department of Economics

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Published

2020-06-30

How to Cite

Bhatti, M. A., Raheem, F. ur ., & Zafar, M. A. . (2020). Environmental Kuznets Curve (EKC): Empirically Examined Long Run Association Between Globalization, Financial Development and CO2 Emission for ASEAN Countries. IRASD Journal of Energy & Environment, 1(1), 01–13. https://doi.org/10.52131/jee.2020.0101.0001

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Articles