Settling Geopolitical Disputes and Overcoming the Carbon Curse to Establish Environmental Sustainability in Asia: A Quantile Regression Analysis

ABSTRACT Southeastern and Southern Asian countries endure high the issue of carbon curse, which necessitates them to become environmentally sustainable by overcoming this curse in due course. Hence, considering 12 countries from these two Asian regions, this study explores whether geopolitical dispute settlement enables them to improve their carbon curse situations. Notably, this study considers an external conflict resolution‐based measure of geopolitical dispute settlement and assesses its impacts on a holistic carbon curse index that emphasizes reductions in carbon emission growth rates and intensity levels. The analysis period ranges from 2000 to 2022 and uses (non)parametric panel data estimators. Accordingly, findings affirm that geopolitical dispute settlement directly reduces the carbon curse, especially across Southeast Asia and in relatively less developed and low carbon curse‐experiencing countries. Additionally, geopolitical dispute settlement indirectly offsets the carbon curse‐exacerbating impacts of natural resources. Additionally, renewable energy consumption fails to lessen the carbon curse, irrespective of regional location, development status, and the severity of the curses faced. Besides, foreign direct investment inflow worsens carbon curse situations, irrespective of the development status, and particularly in countries facing moderate to high degrees of carbon curse. Moreover, energy optimization exacerbates carbon curses, especially across South Asia and in the relatively more developed and low carbon curse‐facing countries. Furthermore, financial development does not influence carbon curse as a whole, but it reduces the curse in relatively wealthier countries. Finally, corruption control efforts fail to lessen the curse, irrespective of the existing carbon curse‐facing level. Therefore, the above findings have critical policy implications in terms of overcoming the carbon curse issue throughout Southeast and South Asia.