Influence of Globalization and Urbanization on CO2 Emissions in Asian Countries: Panel Data Analysis

The growing concerns of the twenty-first century are the anthropogenic economic activities on the environmental degradation. Carbon dioxide as the main domain of greenhouse gas, has sustained to rise in the region instead of obligations under the Paris Agreement. The aim of the study is to examine the relationship between urbanization, globalization, economic development, population growth, energy use and CO2 emissions from 1990 to 2024. Employing panel econometric methods including, endogeneity test, cross-sectional dependency test, unit root test, cointegration test and panel ARDL by PMG, MG and DFE estimator. From the Hausman test, DFE estimator is best to describe the relationship between the variables. The findings show a positive long-run relationship between globalization and CO2 emissions while a negative short-run relationship between urbanization and CO2 emissions. Similarly, population growth has negative association with CO2 emissions both in the long-run and short-run. However, economic development and energy use have positive relationship with CO2 emissions in the long-run and the short-run. The findings carry important implications for climate governance, urban planning, and sustainable development policy across Asian economies.