Exploring the impact of national defense expenditures on environmental quality in South Asia

Purpose This study investigates the relationship between military expenditures and environmental quality in South Asia, focusing on the increasing carbon dioxide (CO2) emissions associated with economic and institutional factors. Design/methodology/approach The analysis uses panel data from 1998 to 2022, applying the method of moments quantile regression (MMQR) to assess the impact of military expenditures alongside economic growth, foreign direct investment (FDI), financial development, urbanization and government effectiveness on CO2. Findings The results reveal a positive association between military expenditures and CO2, aligning with the treadmill of destruction theory. This suggests that increased military spending exacerbates environmental degradation. Other factors, such as economic growth and urbanization, also contribute significantly to rising emissions. Research limitations/implications The findings underscore the need for further exploration of environmentally sustainable strategies within South Asia’s military and industrial sectors. Policies should focus on balancing economic development with environmental preservation. The study gives policymakers insights into the trade-offs between military spending and environmental sustainability. Governments must integrate green technologies into military production and promote effective ecological governance to mitigate CO2. Originality/value This study is the first to apply the MMQR to examine the military expenditure–environment nexus in South Asia, providing robust insights into heterogeneous effects across different levels of CO2 emissions that were absent in prior literature.