Trade openness, human capital, natural resource, and carbon emission nexus: a CS-ARDL assessment for Central Asian economies

Abstract

There is a call for global efforts to preserve the ecological systems that can sustain economies and people's lives. However, carbon emission (CEM) poses a danger to the sustainability of humanity and ecological systems. This analysis looked into the influence of energy use (ERU), human capital (HCI), trade openness (TOP, natural resource (NRR), population, and economic growth (ENG) on CEM. The paper gathered panel data ranging from 1990 to 2020 from the Central Asia region. The CS-ARDL was applied to establish the long-term interaction among the indicators. The paper findings indicated the presence of the Environmental Kuznets Curve (EKC) in the Central Asia regions. Also, the empirical evidence highlighted that energy use, natural resources, and trade openness cause higher levels of CEM. However, the research verified that CEM can be improved through human capital and urban population growth. The study also found that HCI moderates the interaction between NRR and CEM. The causality assessment indicated a one-way interplay between ENG, ERU, NRR, and CEM. The study proposes that in order to support ecological stability in these regions, policy-makers should concentrate on developing human capital, investing in renewable energy sources, and utilizing contemporary technologies to harness natural resources in the economies of Central Asia.