How Economic Growth Contributes to CO2 Emissions in the Presence of Globalization and Eco-Innovations in South Asian Countries?

Abstract

Many nations made pledges at the Paris climate conference to eventually become carbon neutral. As a result, the effects of eco-innovations (ECO), globalization (GLO), and economic growth (GDP) on CO2 emissions in a panel comprising India, Pakistan, Bangladesh, Nepal, Sri Lanka, and Bhutan are assessed in this work. This study employs a unique panel (QARDL) methodology to data from 1980Q1 to 2018Q4 for analysis. The purpose of this study is to find the relation between GDP, GLO, ECO and CO2. The results show that environmental quality is being harmed because of GLO and GDP. Climate-change-causing CO2 emissions are decreasing globally thanks to ECO. Furthermore, the Environmental Kuznets Curve (EKC) theory in developing nations has been confirmed by this work. This study implies that the selected South Asian countries should switch to renewable energy sources to improve environmental quality. In addition, governments will need to rethink their approach to global trade. Importing effective technologies for producing renewable energy should be a priority. The future looks bright for these nations, as rising environmental consciousness will likely lead to the adoption of stringent environmental rules.