Economic growth and environmental degradation paradox in ASEAN: A simultaneous equation model with dynamic panel data approach

Abstract

Economic variables are dynamic in nature. This paper uses a simultaneous equation model to assess the complexity of the link between economic expansion and environmental deterioration in ASEAN. The study examines how CO2 emissions, economic growth, public health initiatives, and control factors interact using dynamic panel data from 2011 to 2020. The population, the amount of forested land, the use of renewable energy, foreign investment, the inflation rate, the total amount of foreign exchange reserves, and government health policies are just a few examples. In order to provide a reliable and accurate assessment of the long-term relationship, this study employs the generalized approach of the Arellano-Bond moment method. The econometric technique deals with the issues of nonstationary, endogeneity, cross-error correlation, and heteroscedasticity.Additionally, the two stage least square (2SLS) method was used to assess the results’ robustness. According to the statistical results, there is a causal link between CO2 emissions and economic growth, and between CO2 emissions and energy consumption. Furthermore, according to the data, ASEAN CO2 emissions showed a monotonically growing relationship during the sample period. Policymakers may use these findings since they can aid in implementing economic measures to promote sustainable and ecologically friendly development.

Exploring the energy–economy–environment paradox through Yin–Yang harmony cognition

“…The EKC hypothesis is founded on the assertion that economic development increases environmental degradation up to a given threshold, beyond which there emerges a possibility of environmental recovery. Many empirical investigations of the EKC analysis use linear polynomial regression [ 7 , 23 ]. EKC analyses have revealed a U-shaped relationship with one turning point, an N-shaped relationship with two points and an M-shaped relationship with three points, depending on the dataset under study.…”

“…According to Eastern philosophers such as Lao Tzu and Confucius, the world is a mystical interplay of interdependent contradictions [ 22 ]. In Western thought, Aristotle and Hegel defined paradoxes as irrational puzzles or double binds that are difficult to resolve [ 23 ]. Both Socrates' elenctic method and Yin–Yang paradox harmonisation are classical instruments employed to blend opposing but complementary elements into a symbiotic coexistence that is essential for natural balance [ 23 ].…”

“…In Western thought, Aristotle and Hegel defined paradoxes as irrational puzzles or double binds that are difficult to resolve [ 23 ]. Both Socrates' elenctic method and Yin–Yang paradox harmonisation are classical instruments employed to blend opposing but complementary elements into a symbiotic coexistence that is essential for natural balance [ 23 ]. However, while the Greek philosophical method of elenchus (ἔλεγχος) focuses on metonymic and metaphorical models for interlocution, the Yin–Yang cognitive framework formed the philosophic basis of traditional Chinese medicine and governance [ 16 , 22 , 23 ].…”

“…Both Socrates' elenctic method and Yin–Yang paradox harmonisation are classical instruments employed to blend opposing but complementary elements into a symbiotic coexistence that is essential for natural balance [ 23 ]. However, while the Greek philosophical method of elenchus (ἔλεγχος) focuses on metonymic and metaphorical models for interlocution, the Yin–Yang cognitive framework formed the philosophic basis of traditional Chinese medicine and governance [ 16 , 22 , 23 ]. The Yin–Yang concept, materialised by the Taijing (太极) symbol, became the embodiment of the core thought of a famous Chinese divination manual, ‘Yijing’ (易经), and was adopted as one of the Confucian Classics in the Han dynasty (202 BCE to 8 AD) [ 15 , 22 ].…”

Applying Energy Taxes to Promote a Clean, Sustainable and Secure Energy System: Finding the Preferable Approaches

“…The existing trial relationship between energy production, economic growth, and environmental pollution determines the impossibility of a quick transition to carbonneutral energy without creating corresponding losses for the national economy; however, it requires consideration of additional incentives for such a transition, such as public health, the need to regulate of energy prices, etc. [5].…”