Urbanization and carbon emission: causality evidence from the new industrialized economies
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Urbanization and carbon emission: causality evidence from the new industrialized economies Khalid Khan1 · Chi‑Wei Su2 · Ran Tao3 · Lin‑Na Hao4 Received: 24 October 2018 / Accepted: 24 September 2019 © Springer Nature B.V. 2019
Abstract This study elucidates the causal relationship between urbanization (URB) and carbon emission (CE) in newly industrialized countries. Countries with high economic growth that have transitioned from agricultural to industrialized economies consume a substantial portion of the world’s energy and release CE. Thus, we use the panel bootstrap Granger causality test to examine the nexus between URB and CE. The result shows that URB has a significant impact on the CE in seven countries, namely Brazil, China, India, Malaysia, Mexico, the Philippines and Thailand. On the other hand, CE Granger-causes URB only in South Korea. The results are consistent with the stochastic differential model, which states that CE is the combination of the rising urban population and economic activities. To minimize CE, these countries should implement energy efficiency policies, reduce the use of fossil fuels, move toward hydel and solar resources and emphasize the conservation of forests. A balanced approach between rural and urban areas by establishing industrial units can generate the same opportunities and will discourage rural–urban migration. Therefore, these governments should have proper urban planning, which can limit the abrupt influx from rural areas. Keywords Urbanization · Carbon emission · Climate change · Bootstrap causality JEL Classification R00 · L60 · Q53 * Chi‑Wei Su [email protected] Khalid Khan [email protected] Ran Tao [email protected] Lin‑Na Hao [email protected] 1
School of Finance, Qilu University of Technology, No.3501 Daxue Rd., Changqing District, Jinan, Shandong, China
2
School of Economics, Qingdao University, 308, Ningxa Rd., Qingdao, Shandong, China
3
Qingdao Municipal Center for Disease Control and Preventation, Qingdao, China
4
School of Business, Liaocheng University, Liaocheng, China
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1 Introduction Economic development and preservation of the environment are two primary challenges for all nations of the world (Aye and Edoja 2017). However, the deterioration in environmental quality is a grave concern and is included among the topmost threats officially proclaimed by the United Nations (Phimphanthavong 2013). Since the 1980s, greenhouse gases have increased, which has unavoidable consequences related to climate change and global warming. Carbon emission (CE) is one of the main factors of greenhouse gases, which are responsible for 60% of global warming (Franco et al. 2017). This environmental concern has become increasingly urgent alongside economic development in the last 2 decades. Economic prosperity has resulted in the rapid growth of the urban population, which exerts pressure on energy consumption and ultimately increases CE. Urbanization is perceived as an important feature of the economic development
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