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Does urbanization increase pollutant emission and energy intensity? evidence from some Asian developing economies

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  • Ruhul Salim
  • Shuddhasattwa Rafiq
  • Sahar Shafiei
  • Yao Yao
Abstract
This paper aims to investigate the effects of urbanization on pollutant emissions and energy intensity in selected Asian developing countries after controlling for the effects of disaggregated (renewable and non-renewable) energy consumption, trade liberalization, and economic growth. We use both linear and nonlinear panel data econometric techniques and employ recently introduced mean group estimation methods, allowing for heterogeneity and cross-sectional dependence. However, to check the robustness of our panel results, we also apply the autoregressive distributed lag (ARDL)-bound testing approach to country-level data. In addition, the relationship between affluence and CO2 emissions is examined in the context of the Environmental Kuznets Curve (EKC) hypothesis. The estimation results identify the population, affluence, and non-renewable energy consumption as major factors in pollutant emissions in Asian countries. However, the results of the EKC hypothesis show that when countries achieve a certain level of economic growth, their emissions tend to decline. Whereas nonlinear results show that renewable energy, urbanization, and trade liberalization reduce emissions, linear estimations do not confirm these outcomes. Thus, substitution of non-renewable for renewable energy consumption, cautious and planned urbanization programs and more liberal trading regimes may be viable options for sustainable growth of these developing Asian economies.

Suggested Citation

  • Ruhul Salim & Shuddhasattwa Rafiq & Sahar Shafiei & Yao Yao, 2019. "Does urbanization increase pollutant emission and energy intensity? evidence from some Asian developing economies," Applied Economics, Taylor & Francis Journals, vol. 51(36), pages 4008-4024, August.
  • Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:4008-4024
    DOI: 10.1080/00036846.2019.1588947
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    Cited by:

    1. Fang, Zhen, 2023. "Assessing the impact of renewable energy investment, green technology innovation, and industrialization on sustainable development: A case study of China," Renewable Energy, Elsevier, vol. 205(C), pages 772-782.
    2. Xu, Chen & Bin, Qiu & Shaoqin, Sun, 2021. "Polycentric spatial structure and energy efficiency: Evidence from China's provincial panel data," Energy Policy, Elsevier, vol. 149(C).
    3. Gulasekaran Rajaguru & Safdar Ullah Khan, 2021. "Causality between Energy Consumption and Economic Growth in the Presence of Growth Volatility: Multi-Country Evidence," JRFM, MDPI, vol. 14(10), pages 1-26, October.
    4. Wang, Qiang & Zhang, Chen & Li, Rongrong, 2022. "Towards carbon neutrality by improving carbon efficiency - A system-GMM dynamic panel analysis for 131 countries’ carbon efficiency," Energy, Elsevier, vol. 258(C).
    5. Shen Zhao & Yong Xu, 2021. "Exploring the Dynamic Spatio-Temporal Correlations between PM 2.5 Emissions from Different Sources and Urban Expansion in Beijing-Tianjin-Hebei Region," IJERPH, MDPI, vol. 18(2), pages 1-18, January.
    6. Lee, Chien-Chiang & Ho, Shan-Ju, 2022. "Impacts of export diversification on energy intensity, renewable energy, and waste energy in 121 countries: Do environmental regulations matter?," Renewable Energy, Elsevier, vol. 199(C), pages 1510-1522.
    7. Hu, Wei & Fan, Yuemin, 2020. "City size and energy conservation: Do large cities in China consume more energy?," Energy Economics, Elsevier, vol. 92(C).
    8. Qu, Weihua & Qu, Guohua & Zhang, Xindong & Robert, Dixon, 2021. "The impact of public participation in environmental behavior on haze pollution and public health in China," Economic Modelling, Elsevier, vol. 98(C), pages 319-335.
    9. Yulan Lv & Wei Chen & Jianquan Cheng, 2019. "Direct and Indirect Effects of Urbanization on Energy Intensity in Chinese Cities: A Regional Heterogeneity Analysis," Sustainability, MDPI, vol. 11(11), pages 1-20, June.
    10. Yan, Chen & Murshed, Muntasir & Ozturk, Ilhan & Siddik, Abu Bakkar & Ghardallou, Wafa & Khudoykulov, Khurshid, 2023. "Decarbonization blueprints for developing countries: The role of energy productivity, renewable energy, and financial development in environmental improvement," Resources Policy, Elsevier, vol. 83(C).
    11. Edmund Ntom Udemba & Naci İbrahim Keleş, 2022. "Interactions among urbanization, industrialization and foreign direct investment (FDI) in determining the environment and sustainable development: new insight from Turkey," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 191-212, February.
    12. Chen, Xu & Xu, Huilin & Zhang, Liang & Cao, Huiping, 2022. "Spatial functional division, infrastructure and carbon emissions: Evidence from China," Energy, Elsevier, vol. 256(C).
    13. Azreen Benazir Abdullah Ahmed & Sakib Amin & Charles Harvie & Rabindra Nepal, 2021. "The Nexus Between Energy and Trade in South Asia: A Panel Analysis," Economic Papers, The Economic Society of Australia, vol. 40(2), pages 134-151, June.
    14. Payne, James E. & Truong, Huong Hoang Diep & Chu, Lan Khanh & Doğan, Buhari & Ghosh, Sudeshna, 2023. "The effect of economic complexity and energy security on measures of energy efficiency: Evidence from panel quantile analysis," Energy Policy, Elsevier, vol. 177(C).
    15. Alina Zaharia & Maria Claudia Diaconeasa & Laura Brad & Georgiana-Raluca Lădaru & Corina Ioanăș, 2019. "Factors Influencing Energy Consumption in the Context of Sustainable Development," Sustainability, MDPI, vol. 11(15), pages 1-28, August.
    16. Ellen Thio & MeiXuen Tan & Liang Li & Muhammad Salman & Xingle Long & Huaping Sun & Bangzhu Zhu, 2022. "The estimation of influencing factors for carbon emissions based on EKC hypothesis and STIRPAT model: Evidence from top 10 countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 11226-11259, September.
    17. Umar Nawaz Kayani & Roohi Mumtaz & Mochammad Fahlevi & Hassan Nasseredine & Acep Hadinata, 2024. "Unbridling the Economic Growth and Environmental Nexus in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 488-495, January.
    18. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    19. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
    20. Awan, Ashar & Abbasi, Kashif Raza & Rej, Soumen & Bandyopadhyay, Arunava & Lv, Kangjuan, 2022. "The impact of renewable energy, internet use and foreign direct investment on carbon dioxide emissions: A method of moments quantile analysis," Renewable Energy, Elsevier, vol. 189(C), pages 454-466.
    21. Hussain, Jamal & Khan, Anwar & Zhou, Kui, 2020. "The impact of natural resource depletion on energy use and CO2 emission in Belt & Road Initiative countries: A cross-country analysis," Energy, Elsevier, vol. 199(C).

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