Growth Dynamics of Sulfur Emissions in the Case of SAARC Countries

Abstract

Climate change is the hotspot of every political and economic debate around the world. Its impacts are severe, and developing countries are highly vulnerable. Greenhouse gas emissions are growing because of economic expansion and an ever-expanding population. Using a fully modified OLS estimator, this study evaluated the link between sulfur emissions (SO2) and economic indices in SAARC nations. In addition, the study included panel data from SAARC nations from 1975 to 2018. For the long-run connection between variables, the study used panel unit root and cointegration tests. The study also included a trend analysis to comprehend the dataset’s monotone tendency. The findings signify that the GDP growth has negatively influenced SO2 emissions. Therefore, foreign direct investment, trade openness, electric energy production, and population growth positively relate to SO2 emissions. The SAARC countries will promote sustainable economic growth because GDP growth is not influencing greenhouse gases. The demand for energy in SAARC countries is growing by with increasing population and economic growth by integrating different economic corridors in the Asia region, which affects environmental quality through increased economic activities. All the nations need to increase renewable resources for energy generation; otherwise, the problem of the environment remains unsolved. SAARC countries need to change the goods mix in international trade and avoid dirty imports and exports to adopt market-based policies.