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The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies

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Abstract

This study investigates the role of energy consumption in environmental degradation and checks the validity of the environmental Kuznets curve (EKC) and pollution haven hypothesis (PHH) for the South Asian economies. The model is also controlled for population growth. The dynamic panel data model is estimated through Fully Modified Ordinary Least Square (FMOLS) rigorously. The results reject the possibility of the existence of EKC but ensure the prevalence of PHH. The study suggests that the South Asian countries should focus on attracting clean foreign investment, whereas the renewable energy production is critical for climate change mitigation. The study also stresses the financial institutions’ active role in providing easy loans for promoting research and development in environmentally friendly production practices.

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Authors and Affiliations

  1. Punjab Economic Policy Research Institute, Lahore, Pakistan

    Shahzada M. Naeem Nawaz

  2. Pakhtunkhwa Economic Policy Research Institute, Abdul Wali Khan University, Mardan, Pakistan

    Shahzad Alvi

  3. School of Social Sciences and Humanities, National University of Sciences and Technology, Islamabad, Pakistan

    Shahzad Alvi & Tanzila Akmal

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  1. Shahzada M. Naeem Nawaz
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  2. Shahzad Alvi
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  3. Tanzila Akmal
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Contributions

Conceptualization, Shahzad Alvi and Tanzila Akmal; methodology and software, Tanzila Akmal and Shahzad Alvi; validation, Shahzad Alvi and Shahzada M. Neam Nawaz; formal analysis, Shahzad Alvi and Tanzila Akmal and Shahzada M. Naeem Nawaz writing—original draft preparation, Shahzad Alvi, Shahzada M. Naeem Nawaz and Tanzila Akmal.

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Nawaz, S.M.N., Alvi, S. & Akmal, T. The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies. Environ Sci Pollut Res 28, 48799–48807 (2021). https://doi.org/10.1007/s11356-021-14164-2

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