Nexus between Greenhouse Gas Emissions, Energy Use and Economic Growth: Empirical Evidence From South Asian Countries

Abstract

This article explores the nexus between three measures of greenhouse gases (CO2, N2 O and CH4) with economic growth (GDP) and energy use for six South Asian countries (Pakistan, India, Nepal, Bangladesh, Sri-Lanka and Bhutan) by using panel ARDL approach from 1990 to 2017. The paper evaluates the three panel models of nitrous oxide (N2 O), carbon dioxide (CO2) and methane (CH4) and studies the relationships with energy use and GDP in the context of (Environmental Kuznets curve) EKC. This study shows non-linear relation of CO2 with GDP as well as of N2 O with GDP hence proves the presence of EKC in long run. The analysis of the study shows the positive significant impact of CO2 on GDP and energy use in long. In case of short run, the relationship of CO2 with energy use is significant at 10% level. In case of methane model for long run, there is negative relationship between CH4 and energy use however, there is positive significant impact between CH4 and GDP. However, there has been negative relationship of N2 O with energy use and positive insignificant relationship with GDP.