Title: The role of macroeconomic development on carbon emissions for 15 Asian countries: panel ARDL approach

Authors: Wen-Cheng Lu

Addresses: Department of Economic and Finance, Ming Chuan University, 5 De Ming Rd., Gui Shan District, Taoyuan City 333, Taiwan

Abstract: This article utilised the panel autoregressive distributed lag (ARDL) model to examine the link between macroeconomic developments and carbon emissions for 15 Asian countries from 1990 to 2013. The results of the panel ARDL model showed that there exist long-run equilibrium relationships between principal macroeconomic variables and carbon emissions in the sample. The long-run elasticity of renewable energy and fossil fuels energy consumption with respect to CO₂ emissions was calculated as −0.299 and 0.967, respectively. The long-run elasticity of GDP, financial development, urban population density and industry value added share with respect to CO₂ emissions was calculated as 0.473, 0.079, −0.633 and −0.10, respectively. FDI was significantly negatively related to CO₂ emissions which were calculated as −0.06 in the short-run. These results suggested that FDI inflow was not yet an environmental threat for Asian economies. Renewable energy and upgrades to industry value added share will help various governments mitigate carbon emissions.

Keywords: carbon emissions; industry value added; foreign direct investment; FDI; energy consumption; macroeconomic development; renewable energy.

DOI: 10.1504/IJGW.2019.097857

International Journal of Global Warming, 2019 Vol.17 No.2, pp.127 - 141

Received: 18 Apr 2018
Accepted: 11 Jul 2018
Published online: 20 Feb 2019 *

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