Investigating the Causal Linkage Among Economic Growth, Energy Consumption, Urbanization and Environmental Quality in Asean-5 Countries

Batool, Syeda Azra; Ahmad, Humara; Gillani, Syed Muhammad Ahmad Hassan; Raza, Hamad

doi:10.32479/ijeep.11213

Cited by 6 publications

(3 citation statements)

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“…Anwar et al ( 2020 ) stated the increase in urbanization and economic growth has increase pollution in East Asia. Energy consumption urban population granger cause to CO 2 emission in ASEAN-5 countries (Batool et al, 2021 ). Findings from Nathaniel ( 2021 ) indicate that urbanization, economic growth, and energy consumption increase environmental degradation.…”

Section: Literature Reviewmentioning

confidence: 99%

Policy insight from renewable energy, foreign direct investment (FDI), and urbanization towards climate goal: insight from Indonesia

Udemba

Philip

2022

Environ Sci Pollut Res

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This study is premised on Indonesia’s climate goal amidst good economic performance. To test the environmental implication of this macroeconomic performance of Indonesia, we adopt Indonesian quarterly data of 1990Q1–2018Q4 for empirical analysis. Relevant instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI), and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches (structural break test, autoregressive distributed lag (ARDL)-bounds testing and Granger causality) are all adopted in this study. Our analysis and policy recommendations are based on the short-run and long-run ARDL dynamics and Granger causality. Findings from ARDL confirmed negative relationship between carbon emission and renewable energy source, FDI, and urbanization. Also, a U-shape instead of inverted U-shaped EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From Granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development; hence, FDI is seen transmitting to both energy sources (fossil fuels and renewables) in a one-way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI, and renewable energy source) in Indonesian environment development.

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Section: Literature Reviewmentioning

confidence: 99%

Policy insight from renewable energy, foreign direct investment (FDI), and urbanization towards climate goal: insight from Indonesia

Udemba

Philip

2022

Environ Sci Pollut Res

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“…In addition to this finding, a unidirectional causality is found ranging from economic growth to energy consumption in three countries, namely Indonesia, Malaysia, and Thailand. Within this specific ASEAN-5 countries, Batool et al (2021) also examined the causal relationship between the above factors and additional factor of urbanization by extending the same casualty model with data set ranging from 1980 to 2018. Upon extensive analysis, only energy consumption and urbanization are shown to deteriorate the quality of environment indicated by the increment of CO 2 emission in the concerned regions.…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing the Impact of Causal Factors on Political Management to Determine Sustainability Policy under Environmental Law: Enriching the Covariance-based SEMxi Model

Sutthichaimethee

Jittawiriyanukoon

2022

IJEEP

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This research aims to develop a causal relationship model on political management for sustainability policy formation under Thai environmental law by applying the best and valid model with a non-spurious property called the Covariance-based on Structural Equation Model with exogenous variables (Covariance-based SEMxi Model). This newly-developed model is in distinction with any past models as it is made effectively applicable to any sectors across areas. The model can also be utilized to design a long-term forecasting model with the ability to determine appropriate future scenarios. When assessing the covariance-based SEMxi model performance, the mean absolute percentage error (MAPE) and the root mean square error (RMSE) are estimated at 1.19% and 1.30%, respectively, in comparison of other models, including Gray-Autoregressive Integrated Moving Average Model (GM-ARIMA), Gray Model (GM), Back Propagation Neural Network (BP), Artificial Neural Natural Model (ANN), and Multiple Regression Model (MR). As for the results, this research reveals a direct impact of economic factors on environmental and social factors. In the meanwhile, social factors have a direct impact on environmental and economic factors. The research also indicates a direct effect on the environment with a maximal magnitude of 67%. Whereas a direct effect of social factors on the environment is detected at the magnitude of 55%. These effects are perceived to exceed the specified carrying capacity set by Thailand. In addition, a causal relationship is observed between economic and social factors, where the environment is found with the lowest error correction capability of only 5 percent. At the same time, economic and social factors are noticed with greater correction capability of 59% and 31%, respectively. This finding implies that the ecosystem will experience slow recovery whenever it deteriorates. Hence, the government must place a higher concentration on the environment, while different measures on environmental legislation should be closely controlled to contain any future damage. Besides, energy consumption must be managed not to exceed the established carrying capacity by simultaneously implementing both proactive and reactive measures. This process can be strengthened by optimizing the newly-introduced model produced by this work for a scenario design in policy management to attain sustainability.

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“…The trade openness (TOP) proxy by summing total export and import of goods and services in monetary terms (US Dollars) as the percentage of GDP. However, this study used 5 countries panel study following the works ofTuna and Tuna (2019),Guzel and Okumus (2020),Yilanci and Pata (2020),Batool et al (2021),,Tan and Uprasen (2021)…”

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confidence: 99%

Role of Oil Prices in Financial Instability, Trade Openness and Economic Growth: Evidence from ASEAN Countries

2023

JEM

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This paper examined the interaction effect of oil prices on financial instability, trade openness, and economic growth in leading ASEAN countries. Based on the data over 1970-2019 this research used the second-generation panel approach to examine the effects of this study. The results of the cross-sectional dependency (CD) test, and the slope homogeneity test showed that the slope heterogeneity exists among countries and the relationship between cross-sectional units. The findings of the co-integration have showed that financial instability, trade openness, oil prices and economic growth have a stable and long-run linkages. In addition, the findings have shown that economic growth is adversely impacted by financial instability and oil prices, and that trade openness has a positive effect on economic growth. The findings further demonstrated the negative effects on economic growth of the interaction term with oil prices and financial instability. The interaction term for oil prices and openness in trade, however, has a positive effect on leading ASEAN economies' economic growth. Nevertheless, the findings of the causal test showed a one-way causal association between financial instability and economic growth; oil prices and economic growth. Similarly, the results confirmed the bidirectional causality between trade openness and economic growth.

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Investigating the Causal Linkage Among Economic Growth, Energy Consumption, Urbanization and Environmental Quality in Asean-5 Countries

Cited by 6 publications

References 0 publications

Policy insight from renewable energy, foreign direct investment (FDI), and urbanization towards climate goal: insight from Indonesia

Policy insight from renewable energy, foreign direct investment (FDI), and urbanization towards climate goal: insight from Indonesia

Analyzing the Impact of Causal Factors on Political Management to Determine Sustainability Policy under Environmental Law: Enriching the Covariance-based SEMxi Model

Role of Oil Prices in Financial Instability, Trade Openness and Economic Growth: Evidence from ASEAN Countries

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