CO2-GDP NEXUS: Case for ASEAN 5

Abstract

This paper examines the causal relationship between carbon dioxide emission (CO2) and Gross Domestics Product (GDP). The nature of causality between CO2 per kilo tan (CO2) and GDP per capita were utilized using a cross country panel data from 1980 to 2010. The test was carried out using panel unit root tests, panel co-integration test, and panel vector error correction estimation and panel Granger causality tests to access the relationship between the respective variables. Our empirical results show the existence of long-run relationship and also suggested that GDP causes CO2 emissions in ASEAN-5. Granger-Causality test result found a one way direction (unidirectional) and no reverse causality. The results also provided indications that a change in CO2 would give favorable impact to the country economic growth. This research would be useful for policy-making by implementing the sustainable energy approach to control the emission and to reduce a green-house effect.

Nexus Among Tourism, Environmental Degradation, Inward FDI and Economic Growth: Fresh Evidence from ASEAN Countries

“…As in some previous studies of Choong (2009), Moudatsou and Kyrkilis (2011), Abdouli and Hammami (2017), Phuyal and Sunuwar (2018), Mustafa (2019), and Dinh et al (2019), FDI was utilized as a determinant of EG. The CO2 emissions and ED nexus is also studied in many prior studies likeAzam et al 2016, Saudi et al (2017), Balli et al (2019), Azam (2019) used CO2 emissions in their studies. The current study also utilized population growth in order to check its effect on EG in selected ASEAN countries.…”

“…Almasaied et al (2008 observed a positive link among FDI and ED in five ASEAN countries. .On the other side, Saudi et al (2017) analyzed the nexus among ED and CO2 emissions and exposed positive nexus among them. Prior studies have analyzed the nexus among tourism, EG, FDI, and carbon emissions and found mixed evidence regarding their interrelationships.…”