Exploring the link between Industrial Development and CO2 Emission in Selected Developing Countries

Abstract

This study examines both the short-run and long-run effects of population, industrial value added, nuclear energy, and energy intensity on carbon emissions in selected developing countries over the period 1990-2024, employing the Panel ARDL bounds testing approach. The analysis uses yearly balanced panel data, with unit root properties tested through the Im-Pesaran-Shin method. The findings indicate that technological advancements in industrialization contribute to a reduction in CO? emissions in the long run. Nuclear energy shows a positive relationship with emissions in both the short and long run, likely due to the generation of radioactive waste, while energy intensity is positively and significantly associated with CO? emissions in both time frames. Diagnostics from the panel ARDL confirm the robustness of the model, and both CUSUM and CUSUM-squared tests indicate no structural breaks during the study period. Overall, the study suggests that adopting modern, environmentally friendly technologies can help lower CO? emissions in these developing countries, and it emphasizes the importance of addressing environmental degradation at an early stage in the short run.