Factors Contributing CO<sub>2</sub> Emissions: A Linear, Nonlinear, and Panel ARDL Model

Rabeya Basri; Chaleampong Kongcharoen

doi:doi:10.11648/j.ijeee.20210602.14

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Factors Contributing CO₂ Emissions: A Linear, Nonlinear, and Panel ARDL Model

Rabeya Basri, Chaleampong Kongcharoen

Published in International Journal of Economy, Energy and Environment (Volume 6, Issue 2)

Received: 7 April 2021 Accepted: 22 April 2021 Published: 30 April 2021

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Abstract

The study examines the linear and nonlinear relationships between per capita carbon dioxide emissions, per capita real GDP, energy consumption, financial development, foreign direct investment, trade openness, urbanization, agriculture, and industry sectors as potential determining factors of CO₂ emissions in the perspective of Bangladesh all through 44 years, starting from 1974. The study also considers the CO₂ emissions from the selected South Asian countries over the period from 1978 and 2018. The study uses three cointegration approaches. First, we employ linear cointegration method and find that crucial determining factors of CO₂ emissions in Bangladesh are real GDP per capita, energy consumption, and urbanization. Then, we apply the nonlinear cointegration method and find that energy consumption and foreign direct investment have asymmetric impacts on carbon release in the long run. While energy consumption, financial development, and FDI have asymmetric influence in the short run. Finally, we apply a panel cointegration test to compare Bangladesh with other South Asian countries in terms of CO₂ emissions. The estimated results disclose that the vital contributing factors of CO₂ emissions in selected South Asian countries are real GDP, energy consumption, financial development, and urbanization. Our results show that energy consumption, financial development, and urbanization upturn CO₂ emissions, while trade openness lowers emissions. We claim that our results are consistent with the EKC hypothesis for both in Bangladesh and selected South Asian countries. The three cointegration estimation findings disclose that urbanization will deteriorate environmental worth in Bangladesh and selected South Asian countries in the long run.

Published in	International Journal of Economy, Energy and Environment (Volume 6, Issue 2)
DOI	10.11648/j.ijeee.20210602.14
Page(s)	46-66
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

CO₂ Emissions, Energy Consumption, Financial Development, FDI, Urbanization, Linear and Nonlinear ARDL

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Rabeya Basri, Chaleampong Kongcharoen. (2021). Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. International Journal of Economy, Energy and Environment, 6(2), 46-66. https://doi.org/10.11648/j.ijeee.20210602.14

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Rabeya Basri; Chaleampong Kongcharoen. Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. Int. J. Econ. Energy Environ. 2021, 6(2), 46-66. doi: 10.11648/j.ijeee.20210602.14

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Rabeya Basri, Chaleampong Kongcharoen. Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. Int J Econ Energy Environ. 2021;6(2):46-66. doi: 10.11648/j.ijeee.20210602.14

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@article{10.11648/j.ijeee.20210602.14,
  author = {Rabeya Basri and Chaleampong Kongcharoen},
  title = {Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {6},
  number = {2},
  pages = {46-66},
  doi = {10.11648/j.ijeee.20210602.14},
  url = {https://doi.org/10.11648/j.ijeee.20210602.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20210602.14},
  abstract = {The study examines the linear and nonlinear relationships between per capita carbon dioxide emissions, per capita real GDP, energy consumption, financial development, foreign direct investment, trade openness, urbanization, agriculture, and industry sectors as potential determining factors of CO2 emissions in the perspective of Bangladesh all through 44 years, starting from 1974. The study also considers the CO2 emissions from the selected South Asian countries over the period from 1978 and 2018. The study uses three cointegration approaches. First, we employ linear cointegration method and find that crucial determining factors of CO2 emissions in Bangladesh are real GDP per capita, energy consumption, and urbanization. Then, we apply the nonlinear cointegration method and find that energy consumption and foreign direct investment have asymmetric impacts on carbon release in the long run. While energy consumption, financial development, and FDI have asymmetric influence in the short run. Finally, we apply a panel cointegration test to compare Bangladesh with other South Asian countries in terms of CO2 emissions. The estimated results disclose that the vital contributing factors of CO2 emissions in selected South Asian countries are real GDP, energy consumption, financial development, and urbanization. Our results show that energy consumption, financial development, and urbanization upturn CO2 emissions, while trade openness lowers emissions. We claim that our results are consistent with the EKC hypothesis for both in Bangladesh and selected South Asian countries. The three cointegration estimation findings disclose that urbanization will deteriorate environmental worth in Bangladesh and selected South Asian countries in the long run.},
 year = {2021}
}

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TY  - JOUR
T1  - Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model
AU  - Rabeya Basri
AU  - Chaleampong Kongcharoen
Y1  - 2021/04/30
PY  - 2021
N1  - https://doi.org/10.11648/j.ijeee.20210602.14
DO  - 10.11648/j.ijeee.20210602.14
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 46
EP  - 66
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20210602.14
AB  - The study examines the linear and nonlinear relationships between per capita carbon dioxide emissions, per capita real GDP, energy consumption, financial development, foreign direct investment, trade openness, urbanization, agriculture, and industry sectors as potential determining factors of CO2 emissions in the perspective of Bangladesh all through 44 years, starting from 1974. The study also considers the CO2 emissions from the selected South Asian countries over the period from 1978 and 2018. The study uses three cointegration approaches. First, we employ linear cointegration method and find that crucial determining factors of CO2 emissions in Bangladesh are real GDP per capita, energy consumption, and urbanization. Then, we apply the nonlinear cointegration method and find that energy consumption and foreign direct investment have asymmetric impacts on carbon release in the long run. While energy consumption, financial development, and FDI have asymmetric influence in the short run. Finally, we apply a panel cointegration test to compare Bangladesh with other South Asian countries in terms of CO2 emissions. The estimated results disclose that the vital contributing factors of CO2 emissions in selected South Asian countries are real GDP, energy consumption, financial development, and urbanization. Our results show that energy consumption, financial development, and urbanization upturn CO2 emissions, while trade openness lowers emissions. We claim that our results are consistent with the EKC hypothesis for both in Bangladesh and selected South Asian countries. The three cointegration estimation findings disclose that urbanization will deteriorate environmental worth in Bangladesh and selected South Asian countries in the long run.
VL  - 6
IS  - 2
ER  -

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Rabeya Basri

Department of Economics, University of Rajshahi, Rajshahi, Bangladesh
Chaleampong Kongcharoen

Faculty of Economics, Thammasat University, Bangkok, Thailand

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Rabeya Basri, Chaleampong Kongcharoen. (2021). Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. International Journal of Economy, Energy and Environment, 6(2), 46-66. https://doi.org/10.11648/j.ijeee.20210602.14

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Rabeya Basri; Chaleampong Kongcharoen. Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. Int. J. Econ. Energy Environ. 2021, 6(2), 46-66. doi: 10.11648/j.ijeee.20210602.14

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AMA Style

Rabeya Basri, Chaleampong Kongcharoen. Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model. Int J Econ Energy Environ. 2021;6(2):46-66. doi: 10.11648/j.ijeee.20210602.14

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@article{10.11648/j.ijeee.20210602.14,
  author = {Rabeya Basri and Chaleampong Kongcharoen},
  title = {Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {6},
  number = {2},
  pages = {46-66},
  doi = {10.11648/j.ijeee.20210602.14},
  url = {https://doi.org/10.11648/j.ijeee.20210602.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20210602.14},
  abstract = {The study examines the linear and nonlinear relationships between per capita carbon dioxide emissions, per capita real GDP, energy consumption, financial development, foreign direct investment, trade openness, urbanization, agriculture, and industry sectors as potential determining factors of CO2 emissions in the perspective of Bangladesh all through 44 years, starting from 1974. The study also considers the CO2 emissions from the selected South Asian countries over the period from 1978 and 2018. The study uses three cointegration approaches. First, we employ linear cointegration method and find that crucial determining factors of CO2 emissions in Bangladesh are real GDP per capita, energy consumption, and urbanization. Then, we apply the nonlinear cointegration method and find that energy consumption and foreign direct investment have asymmetric impacts on carbon release in the long run. While energy consumption, financial development, and FDI have asymmetric influence in the short run. Finally, we apply a panel cointegration test to compare Bangladesh with other South Asian countries in terms of CO2 emissions. The estimated results disclose that the vital contributing factors of CO2 emissions in selected South Asian countries are real GDP, energy consumption, financial development, and urbanization. Our results show that energy consumption, financial development, and urbanization upturn CO2 emissions, while trade openness lowers emissions. We claim that our results are consistent with the EKC hypothesis for both in Bangladesh and selected South Asian countries. The three cointegration estimation findings disclose that urbanization will deteriorate environmental worth in Bangladesh and selected South Asian countries in the long run.},
 year = {2021}
}

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TY  - JOUR
T1  - Factors Contributing CO2 Emissions: A Linear, Nonlinear, and Panel ARDL Model
AU  - Rabeya Basri
AU  - Chaleampong Kongcharoen
Y1  - 2021/04/30
PY  - 2021
N1  - https://doi.org/10.11648/j.ijeee.20210602.14
DO  - 10.11648/j.ijeee.20210602.14
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 46
EP  - 66
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20210602.14
AB  - The study examines the linear and nonlinear relationships between per capita carbon dioxide emissions, per capita real GDP, energy consumption, financial development, foreign direct investment, trade openness, urbanization, agriculture, and industry sectors as potential determining factors of CO2 emissions in the perspective of Bangladesh all through 44 years, starting from 1974. The study also considers the CO2 emissions from the selected South Asian countries over the period from 1978 and 2018. The study uses three cointegration approaches. First, we employ linear cointegration method and find that crucial determining factors of CO2 emissions in Bangladesh are real GDP per capita, energy consumption, and urbanization. Then, we apply the nonlinear cointegration method and find that energy consumption and foreign direct investment have asymmetric impacts on carbon release in the long run. While energy consumption, financial development, and FDI have asymmetric influence in the short run. Finally, we apply a panel cointegration test to compare Bangladesh with other South Asian countries in terms of CO2 emissions. The estimated results disclose that the vital contributing factors of CO2 emissions in selected South Asian countries are real GDP, energy consumption, financial development, and urbanization. Our results show that energy consumption, financial development, and urbanization upturn CO2 emissions, while trade openness lowers emissions. We claim that our results are consistent with the EKC hypothesis for both in Bangladesh and selected South Asian countries. The three cointegration estimation findings disclose that urbanization will deteriorate environmental worth in Bangladesh and selected South Asian countries in the long run.
VL  - 6
IS  - 2
ER  -

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