Environmental Degradation in Asian Countries with the Impact of Economic Growth, Energy Consumption, Financial Development and Institutional Quality.

Abstract

Total 38 Asian nations were studied from 1985 to 2018 for their institutional quality, use of renewable energy sources, increase in GDP, use of electric power, and environmental deterioration. Using a combined middle group evaluator, researchers may examine the connection between factors. The variables in question can be employed in stationary and I (1) at the ARDL panel level, as shown by the Harris-Tzavalis and Levin-Lin-Chu tests. Using the Kao and Pedroni cointegration tests, we may conclude that the variables under discussion are interdependent. Examined were long-term findings of the Pool Mean Group. The long-term pool means group estimator found that energy use had a positive and substantial impact on environmental deterioration in the nations studied. An increase in energy usage of 1% translates in an annual rise in environmental deterioration of 0.821% in industrialized countries, according to the report. Economic development has a favorable and large impact on environmental deterioration in the nations studied by the ARDL long-term panel. Economic growth statistics show that a 1% rise in economic development generates an additional 1.592 billion us dollars in environmental damage per year in the sample nations. In the long term, economic expansion has a favorable and significant effect on environmental deterioration, while in the near term, this influence is non-significant and beneficial. A 0.0052 percent annual deterioration of an environment in the experimental economies is shown by the long-term PMG data, indicating a very little positive impact from an economy increases of 1 percent. A similar conclusion may be drawn from the latest economic growth studies. The ARDL technique was used by Khan et al. (2020a) to examine the impact of energy use and economic development on environmental deterioration in Pakistan. Pakistan's economic activities have a favorable impact on environmental deterioration, according to the conclusions of the study. Khan et al. (2019a, b) show that economic development has a favorable impact on environmental deterioration in Pakistan using the dynamic ARDL modelling ix approach. They argued that EKC held true in the nations they studied because the favorable impact of increased economic development on environmental deterioration.