Industrial practices and quality of environment: evidence for Asian economies
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Industrial practices and quality of environment: evidence for Asian economies Nabila Asghar1 · Awais Anwar2 · Hafeez Ur Rehman3 · Saba Javed4 Received: 28 February 2019 / Accepted: 2 December 2019 © Springer Nature B.V. 2019
Abstract The contemporary study takes under consideration some countries of Asia to find the cointegration and causal association between industrial growth and environmental degradation. To achieve this object, the data have been collected from 1986 to 2015. Study incorporates panel autoregressive distributed lag model and Pedroni co-integration method. All the variables are found to be stationary at first difference. In order to explore long-run relationship, we include the estimates of pool mean group. Findings demonstrate that industrialization, energy consumption and trade volume deteriorate the quality of environment in long-run. However, short-run results indicate unidirectional causality running from industry value added per capita to CO2 emission, while energy consumption exhibits bidirectional causality with C O2 emission. The study asserts that there is need of hour to formulate and execute efficient environmental-friendly policies, specifically in industrial sector. Keywords CO2 emission · Industrialization · Autoregressive distributed lag model · Energy consumption, causality JEL Classification P18 · Q19 · Q20
* Awais Anwar [email protected] Nabila Asghar [email protected] Hafeez Ur Rehman [email protected] Saba Javed [email protected] 1
Department of Economics and Business Administration, University of Education Bank Road Campus, Lahore, Pakistan
2
Department of Economics, The University of Lahore, Lahore, Pakistan
3
Department of Economics, School of Business Administration, University of Management and Technology, Lahore, Pakistan
4
Institute of Agriculture and Resource Economics, University of Agriculture Faisalabad, Faisalabad, Pakistan
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1 Introduction The natural environment participates remarkably to become the source of inputs in process of production as fulfilling the economic activities through ecological services, which unveils the fact any economy and society has been associated as essential part of existence of natural environment. With each passing day, this is current epoch that many environmental risks and hazards are initiating and getting worse for the economy because of environmental degradation (Al-Mulali and Ozturk 2015). No doubt when human beings were not highly developed, the universe was too peaceful and relaxed. Fresh air and natural foods are commonly available, and lives were safe from hazardous diseases. Even though today we are advancing in technology, we are facing different kinds of problems as well as in response of technological advancement like pollution causing environment and ecology degradation (Dockery and Pope 1996). This is evident from observing the fall in the life expectancy of humans in the history from Adam and Eve to present. In many cases, growth pro
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