Influences of economy, energy, finance, and natural resources on carbon emissions in Bangladesh

Abstract

Understanding the risks posed to humankind, the environment, and overall growth requires a deep exploration of the profound impact of greenhouse gas (GHG) emissions, especially carbon dioxide (CO2), on global climate change. This study explores the complex relationships among economic extension, energy utilization, financial progress, natural resource rents, and CO2 emissions in Bangladesh. By analyzing annual data from 1974 to 2022, our analysis reveals a long-term connection between the variables, as evidenced by the autoregressive distributed lag (ARDL) bounds test. We found that for every 1% rise in economic growth, energy use, financial progress, and natural resource rents, CO2 emissions rise by 0.13%, 1.50%, 0.39%, and 0.04%, respectively. This is based on the dynamic ordinary least squares (DOLS) method. The outcomes are further supported by the canonical cointegrating regression (CCR), followed by fully modified ordinary least squares (FMOLS). By illuminating the causes of Bangladesh's environmental degradation, this study offers actionable policy suggestions aimed at fostering sustainable growth and enforcing strict regulations that effectively mitigate environmental harm. Graphical Abstract: (Figure presented.)