Does globalization affect the green economy and environment? The relationship between energy consumption, carbon dioxide emissions, and economic growth

Abstract

This study analyzes the relationship between globalization, energy consumption, and economic growth among selected South Asian countries to promote the green economy and environment. This study also finds causal association between energy growth and nexus of CO₂ emissions and employed the premises of the EKC framework. The study used annual time series analysis, starting from 1985 to 2019. The data set has been collected from the World Development Indicator (WDI). The result of a fully modified ordinary least square (FMOLS) method describes a significantly worse quality environment in the South Asian region. The individual country as Bangladesh shows a positively significant impact on the CO₂ emissions and destroys the level of environment regarding non-renewable energy and globalization index. However, negative and positive growth levels (GDP) and square of GDP confirm the EKC hypothesis in this region. This study has identified the causality between GDP growth and carbon emission and found bidirectional causality between economic growth and energy use.

Keywords: CO2 emissions; Energy consumption; Globalization; Green economy; South Asian countries.