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Carbon Emission and Economic Growth of SAARC Countries: A Vector Autoregressive (VAR) Analysis
Mirza Md. Moyen Uddin and Md. Abdul Wadud
Volume 14 Issue 3
Global Journal of Human-Social Science
Volume 14 Issue 3
Global Journal of Human-Social Science
This paper examines the causal relationship betweencarbon( 2 CO )emissionsandeconomicgrowthinsevenSAARCcountriesusingtimeseriesdatafortheperiodfrom1972-2012.WeappliedVectorErrorCorrectionModeling(VECM) approach. We have also applied Augmented DickeyFuller(ADF)andPhillips-Perron(P.P)testandJohansen’scointegrationapproachtochecktimeseriespropertiesandcointegrationrelationshipofthevariables.Resultsexhibitacointegration relationship between environmental pollution andeconomicgrowth.Resultsalsoshowthattheestimatedcoefficients of2 CO emissions have positive and significantimpactsonGDPinthelongrun.Theseresultswillhelptheenvironmentalauthoritiestounderstandtheeffectsofeconomic growth on environment for degradation and managethe environmental problems using macroeconomic methods.
