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Analyzing the impact of industrial growth and agricultural development on environmental degradation in South and East Asia

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Abstract

This study aims to examine the impact of industrial growth, agricultural value added, economic growth, and renewable energy consumption on environmental pollution in South and East Asian countries using panel ARDL approach over the period 1970–2020. Furthermore, the impact of institutional quality in this relationship is uniquely explored. Baseline model suggests that environmental damage is exacerbated by agricultural value added and industrial growth in the long run, but not in the short run. The relationship between economic growth and carbon emissions is an obvious inverted U-shaped link in the long run, but it is a U-shaped association in the short run. Renewable energy consumption has significant adverse effects on environmental pollution both in the short and long term. In the long run, institutional quality plays a stronger moderating role in the association between baseline regressors and environmental pollution. Also, institutional quality helps to expand the ability of industry and agriculture to improve environmental quality. Lastly, the threshold results reflect that the impact of regressors on environmental degradation is penetrating into the level of institutional quality. The strong progressive effects of agricultural and industrial growth on environmental degradation are more similar to the existing literature in the long term, but not in the short term. In addition, the long-term condensation effect of renewable energy on CO2 emissions and the enhancing effect of economic growth on CO2 emissions are relatively similar to existing literature. In contrast to weak institutional quality, strong institutions can improve the ability of agriculture and industry to reduce environmental damage.

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Data availability

The data supporting the outcomes of this study are freely available on the World Development Indicators page published by (World Bank, 2020), at https://databank.worldbank.org/source/world548 development-indicators. Data on renewable energy consumption is available at https://data.oecd.org/energy/renewable-energy.htm. Institutional quality index data is available at https://www.heritage.org/index/about. Ecological footprint data is available at https://www.footprintnetwork.org/resources/data/.

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Y.S contributed to the conceptualization of the study, analysis, design, and conclusions; reviewed the manuscript; software data curation, editing, and literature search; and approved the final submission.

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Correspondence to Yue Sui.

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Appendix

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Table 11.

Table 11 Description, measurement, and data source for each variable 

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Sui, Y. Analyzing the impact of industrial growth and agricultural development on environmental degradation in South and East Asia. Environ Sci Pollut Res 30, 121090–121106 (2023). https://doi.org/10.1007/s11356-023-30766-4

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