Impact of Energy Consumption and Economic Growth on Environmental Degradation: Evidence from South Asian Countries

Environmental sustainability is one of the major concerns of countries worldwide regarding low carbon emissions. This study aims to investigate the impact of economic growth and energy consumption (EC) on carbon dioxide emission by utilizing panel methods. This study uses panel data from four selected South Asian countries for 30 years, from 1991 to 2020. The econometrics approach cointegration test (Pedroni, Kao, and Fisher), Fully Modified Ordinary Least Square (FMOLS), and Dynamic Ordinary Least Square (DOLS) used to examine long-run association and the impact of economic growth, EC (energy consumption), trade openness and urban population on carbon dioxide emission. The results of three-panel cointegration techniques, such as (Pedroni, Kao, and Fisher, confirm that all study variables are cointegrated. The study results show that all variables, such as energy consumption, economic growth, trade openness, and urban population, positively and statistically significantly impact CO2 emissions. The study results help all relevant stakeholders, including environmental scientists, professionals, and educators, make appropriate ecological sustainability policies, namely reducing carbon dioxide emissions in the study economy.