Causal Relationship between Education, Carbon Dioxide (CO2 ) Emission and Economic Growth in Bangladesh

Abstract

The purpose of this study is to test the relationship among education, environmental pollution and economic growth in Bangladesh. Perhaps this is the first research done using time series data for 37 years from 1974-2010. Vector Error Correction Mechanism (VECM) techniques is applied to establish the long run and short run relationships among the variables in the model. Using Johansen cointegration method, the empirical findings indicate that there exists long run cointegration among the variables. Unit root test were performed to test the statistical properties of the data used in variables. Results show strong positive relationship among environmental pollution, education expenditure and economic growth. The results of this study will help the environmental authorities to understand the effects of economic growth for degrading the environmental quality and manage the environmental pollution by creating awareness through education. Abstract-The purpose of this study is to test the relationship among education, environmental pollution and economic growth in Bangladesh. Perhaps this is the first research done using time series data for 37 years from 1974-2010. Vector Error Correction Mechanism (VECM) techniques is applied to establish the long run and short run relationships among the variables in the model. Using Johansen cointegration method, the empirical findings indicate that there exists long run cointegration among the variables. Unit root test were performed to test the statistical properties of the data used in variables. Results show strong positive relationship among environmental pollution, education expenditure and economic growth. The results of this study will help the environmental authorities to understand the effects of economic growth for degrading the environmental quality and manage the environmental pollution by creating awareness through education.