Do Institutions Control Carbon Emissions Due to Globalization and Growth? Analysis of Saarc and Asean Regions

Abstract

This study looks into how institutions could assist SAARC and ASEAN nations in lowering carbon emissions brought on by globalization and economic growth from 2000 to 2021. For empirical analysis, this study uses Pooled OLS, fixed effect, and random effect models to overcome the endogeneity, two stages least squares (2SLS) instrumental variables are used. This study provides initial evidence in favor of the growth-emission nexus environmental kuznet curve theory. Second, this study also justified the findings of existing studies that globalization increases carbon emissions in both regions. More importantly, this study indicates that institutions can play important role in lowering carbon emissions resulting from globalization and growth. The study recommends that better working institutions can help the government to indicate high carbon emitting units and to formulate environmental regulations for production units for a sustainable environment. JEL Classification: Q01 E02 F64 N15 N15