Carbon Emission and Economic Growth of SAARC Countries: A Vector Autoregressive (VAR) Analysis

1
Mirza Md. Moyen Uddin
Mirza Md. Moyen Uddin
2
Mirza Md. Moyen Uddin and Md. Abdul Wadud
Mirza Md. Moyen Uddin and Md. Abdul Wadud
1 Rajshahi University

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This paper examines the causal relationship between carbon (CO 2 ) emissions and economic growth in seven SAARC countries using time series data for the period from 1972-2012. We applied Vector Error Correction Modeling (VECM) approach. We have also applied Augmented DickeyFuller (ADF) and Phillips-Perron (P.P) test and Johansen’s cointegration approach to check time series properties and cointegration relationship of the variables. Results exhibit a cointegration relationship between environmental pollution and economic growth. Results also show that the estimated coefficients of (CO 2 ) emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.

16 Cites in Articles

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Mirza Md. Moyen Uddin. 2014. \u201cCarbon Emission and Economic Growth of SAARC Countries: A Vector Autoregressive (VAR) Analysis\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 14 (GJHSS Volume 14 Issue E3): .

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GJHSS Volume 14 Issue E3
Pg. 13- 21
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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v1.2

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July 11, 2014

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English

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This paper examines the causal relationship between carbon (CO 2 ) emissions and economic growth in seven SAARC countries using time series data for the period from 1972-2012. We applied Vector Error Correction Modeling (VECM) approach. We have also applied Augmented DickeyFuller (ADF) and Phillips-Perron (P.P) test and Johansen’s cointegration approach to check time series properties and cointegration relationship of the variables. Results exhibit a cointegration relationship between environmental pollution and economic growth. Results also show that the estimated coefficients of (CO 2 ) emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.

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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
Mirza Md. Moyen Uddin and Md. Abdul Wadud

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