Abstract
The study endeavors to estimate the impression of good governance and the role of ICT by controlling for urbanization in the SAARC countries from 2000 to 2018. To this end, the study developed a composite index of governance using six indicators of governance adopted from world governance indicators and using the fully modified and dynamic OLS in the study for long-run dynamics. The results supported that governance in the panel is further deteriorating the environment, while information, communication, and technology seem very attractive indicators to mitigate the CO2 emissions in the region. The results of these variables for individual countries differ at various stages. The causal linkages between CO2 emissions and urbanization are two-way, while the causal links from CO2 emissions to governance, ICT, and economic growth are unidirectional. Finally, the study devised multiple policies for theory and practice.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Data availability
The data on this research is freely available on given links in the Data and Methods section.
Abbreviations
- ADF:
-
Augmented Dickey-Fuller
- ARDL:
-
Autoregressive distributed lags
- ASEAN:
-
The Association of Southeast Asian Nations
- BRICS:
-
Brazil, Russia, India, China, South Africa
- CO2 :
-
Carbon dioxide
- EU:
-
Energy use
- G20:
-
Group of 20
- GDP:
-
Gross domestic product
- GHG:
-
Greenhouse gases
- GOV:
-
Governance
- ICT:
-
Information communication and technology
- IPAT:
-
Impact of population, affluence, and technology
- IPCC:
-
Intergovernmental panel on climate change
- IPS:
-
Im, Pesaran, and Shin
- OLS:
-
Ordinary least square
- PCA:
-
Principal component analysis
- PD-LS:
-
Panel dynamic OLS
- PFM-LS:
-
Panel fully modified OLS
- PMG:
-
Pooled mean group
- SAARC:
-
South Asian Association for Regional Cooperation
- STIRPAT:
-
Stochastic impact by regression on PAT
- UP:
-
Urban population
- WGI:
-
World governance indicators
References
Abid, M. (2016). Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies. Utilities Policy, 41, 85–94. https://doi.org/10.1016/j.jup.2016.06.009
Acheampong, A. O. (2018). Economic growth, CO2 emissions and energy consumption: What causes what and where? Energy Economics, 74, 677–692. https://doi.org/10.1016/j.eneco.2018.07.022
Ali, R., Bakhsh, K., & Yasin, M. A. (2019). Impact of urbanization on CO2 emissions in emerging economy: Evidence from Pakistan. Sustainable Cities and Society, 48, 101553. https://doi.org/10.1016/j.scs.2019.101553
AñónHigón, D., Gholami, R., & Shirazi, F. (2017). ICT and environmental sustainability: A global perspective. Telematics and Informatics, 34, 85–95. https://doi.org/10.1016/j.tele.2017.01.001
Asongu, S. A., & Odhiambo, N. M. (2019). Governance, CO2 emissions and inclusive human development in sub-Saharan Africa. 38, 18–36. https://doi.org/10.1177/0144598719835594
Aye, G. C., Edoja, P. E., & Charfeddine, L. (2017). Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model. Cogent Economics & Finance, 5, 1379239. https://doi.org/10.1080/23322039.2017.1379239
Bhuiyan, M. A., Jabeen, M., Zaman, K., Khan, A., Ahmad, J., & Hishan, S. S. (2018). The impact of climate change and energy resources on biodiversity loss: Evidence from a panel of selected Asian countries. Renewable Energy, 117, 324–340. https://doi.org/10.1016/J.RENENE.2017.10.054
Bilgili, F., Koçak, E., & Bulut, Ü. (2016). The dynamic impact of renewable energy consumption on CO2 emissions: A revisited environmental Kuznets curve approach. Renewable and Sustainable Energy Reviews, 54, 838–845. https://doi.org/10.1016/J.RSER.2015.10.080
Breitung, J. (1999). The local power of some unit root tests for panel data. SFB 373 Discuss. Pap.
Chatti, W. (2021). Moving towards environmental sustainability: Information and communication technology (ICT), freight transport, and CO2 emissions. Heliyon, 7, e08190. https://doi.org/10.1016/J.HELIYON.2021.E08190
Chen, F., Liu, A., Lu, X., Zhe, R., Tong, J., & Akram, R. (2022). Evaluation of the effects of urbanization on carbon emissions: The transformative role of government effectiveness. Frontiers in Energy Research, 10, 115. https://doi.org/10.3389/FENRG.2022.848800/BIBTEX
Danish, Baloch, M. A., & Wang, B. (2019a). Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience. Structural Change and Economic Dynamics, 51, 119–125. https://doi.org/10.1016/j.strueco.2019.08.007
Danish, Zhang, J., Wang, B., & Latif, Z. (2019b). Towards cross-regional sustainable development: The nexus between information and communication technology, energy consumption, and CO2 emissions. Sustainable Development, 27, 990–1000. https://doi.org/10.1002/sd.2000
Deyshappriya, N. R. R. (2018). Examining poverty trends in South Asian countries: Where is Sri Lanka among its South Asian counterparts?
Dumitrescu, E.-I.I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29, 1450–1460. https://doi.org/10.1016/J.ECONMOD.2012.02.014
Ellis, P., & Roberts, M. (2016). Leveraging urbanization in South Asia. The World Bank Group.
Engle, R. F., Granger, C. W. J., Engle, R., & Granger, C. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica, 55, 251–276.
Faisal, F., Azizullah, Tursoy, T., & Pervaiz, R. (2020). Does ICT lessen CO2 emissions for fast-emerging economies? An application of the heterogeneous panel estimations. Environmental Science and Pollution Research, 27, 10778–10789. https://doi.org/10.1007/S11356-019-07582-W/FIGURES/1
Gani, A. (2012). The relationship between good governance and carbon dioxide emissions: Evidence from developing economies. Journal of Economic Development, 37, 77–93.
Güney, T. (2022). Solar energy, governance and CO2 emissions. Renewable Energy, 184, 791–798. https://doi.org/10.1016/J.RENENE.2021.11.124
Hadri, K. (2000). Testing for stationarity in heterogeneous panel data. The Economic Journal, 3, 148–161. https://doi.org/10.1111/1368-423X.00043
Hafeez, M., Chunhui, Y., Strohmaier, D., Ahmed, M., & Jie, L. (2018). Does finance affect environmental degradation: Evidence from One Belt and One Road Initiative region? Environmental Science and Pollution Research, 25, 9579–9592. https://doi.org/10.1007/s11356-018-1317-7
Halkos, G. E., & Tzeremes, N. G. (2013). Carbon dioxide emissions and governance: A nonparametric analysis for the G-20. Energy Economics, 40, 110–118. https://doi.org/10.1016/j.eneco.2013.06.010
Hwang, Y., Um, J.-S., Hwang, J., & Schlüter, S. (2020). Evaluating the causal relations between the Kaya identity index and ODIAC-based fossil fuel CO 2 flux. Energies, 13, 1–20.
Im, K. S., Pesaran, M., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Economics, 115, 53–74.
IPCC. (2014). AR5 Climate Change 2014–impacts, adaptation and vulnerability. Geneva: IPCC’s Fifth Assessment Report. Geneva.
Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Economics, 90, 1–44. https://doi.org/10.1016/S0304-4076(98)00023-2
Kao, C., & Chiang, M.-H. (2000). On the estimation and inference of a cointegrated regression in panel data. Advance in Econometrics. https://doi.org/10.1016/S0731-9053(00)15007-8
Kaya, Y., & Yokobori, K. (1997). Environment, energy, and economy : Strategies for sustainability. United Nations University Press.
Khan, A., Chenggang, Y., Bano, S., & Hussain, J. (2020a). The empirical relationship between environmental degradation, economic growth, and social well-being in Belt and Road Initiative countries. Environmental Science and Pollution Research International, 27, 30800–30814. https://doi.org/10.1007/S11356-020-09058-8
Khan, A., Chenggang, Y., Hussain, J., Bano, S., & Nawaz, Aa. A. (2020b). Natural resources, tourism development, and energy-growth-CO2 emission nexus: A simultaneity modeling analysis of BRI countries. Resources Policy, 68, 101751. https://doi.org/10.1016/J.RESOURPOL.2020.101751
Khan, M. K., Khan, M. I., & Rehan, M. (2020c). The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan. Financial Innovation, 6, 1. https://doi.org/10.1186/s40854-019-0162-0
KhoshnevisYazdi, S., & Dariani, A. G. (2019). CO 2 emissions, urbanisation and economic growth: Evidence from Asian countries. Economic Research Istraživanja, 32, 510–530. https://doi.org/10.1080/1331677X.2018.1556107
Lee, J. W., & Brahmasrene, T. (2014). ICT, CO2 Emissions and economic growth: Evidence from a panel of ASEAN. Global Economic Review, 43, 93–109. https://doi.org/10.1080/1226508X.2014.917803
Liu, X., Latif, K., Latif, Z., & Li, N. (2020). Relationship between economic growth and CO2 emissions: Does governance matter? Environmental Science and Pollution Research, 27, 17221–17228. https://doi.org/10.1007/s11356-020-08142-3
Liu, Y., Yan, B., & Zhou, Y. (2016). Urbanization, economic growth, and carbon dioxide emissions in China: A panel cointegration and causality analysis. Journal of Geographical Sciences, 26, 131–152. https://doi.org/10.1007/s11442-016-1259-2
Mahmood, H., Alkhateeb, T. T. Y., Furqan, M. (2020). Industrialization, urbanization and CO2 emissions in Saudi Arabia: Asymmetry analysis. Energy Reports 6, 1553–1560. https://doi.org/10.1016/J.EGYR.2020.06.004
Martínez-Zarzoso, I. (2008). The impact of urbanization on CO2 emissions: Evidence from developing countries. CESifo Work. Pap. Ser.
Martínez-Zarzoso, I., & Maruotti, A. (2011). The impact of urbanization on CO2 emissions: Evidence from developing countries. Ecological Economics, 70, 1344–1353. https://doi.org/10.1016/j.ecolecon.2011.02.009
McGee, J. A., & York, R. (2018). Asymmetric relationship of urbanization and CO2 emissions in less developed countries. PLoS One, 13, e0208388. https://doi.org/10.1371/journal.pone.0208388
Mignamissi, D., Djeufack, A. (2022). Urbanization and CO2 emissions intensity in Africa. Journal Environment Planning and Management, 65, 1660–1684. https://doi.org/10.1080/09640568.2021.1943329/SUPPL_FILE/CJEP_A_1943329_SM8310.DOCX
Muhammad, F., Khan, A., Razzaq, N., & Karim, R. (2020). Influence of tourism, governance, and foreign direct investment on energy consumption and CO2 emissions: A panel analysis of Muslim countries. Environmental Science and Pollution Research, 1–16. https://doi.org/10.1007/s11356-020-10502-y
Pan American Health Organization. (2012). The Environment and Human Security.
Paranunzio, R., Ceola, S., Laio, F., & Montanari, A. (2019). Evaluating the effects of urbanization evolution on air temperature trends using nightlight satellite data. Atmosphere (Basel), 10, 117. https://doi.org/10.3390/atmos10030117
Pedroni, P. (2000). Fully modified OLS for heterogeneous cointegrated panels. Dep. Econ. Work. Pap.
Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61, 653–670. https://doi.org/10.1111/1468-0084.0610s1653
Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. Review of Economics and Statistics, 83, 727–731.
Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the ppp hypothesis. Economic Theory, 20, 597–625. https://doi.org/10.1017/S0266466604203073
Poumanyvong, P., & Kaneko, S. (2010). Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis. Ecological Economics, 70, 434–444. https://doi.org/10.1016/j.ecolecon.2010.09.029
Pour, M. A. A. (2012). The effects of good governance on environmental quality. Australian Journal of Basic and Applied Sciences, 6, 437–443.
Raheem, I. D., Tiwari, A. K., & Balsalobre-Lorente, D. (2020). The role of ICT and financial development in CO2 emissions and economic growth. Environmental Science and Pollution Research, 27, 1912–1922. https://doi.org/10.1007/S11356-019-06590-0/FIGURES/2
Rahman, M. M. (2017). Do population density, economic growth, energy use and exports adversely affect environmental quality in Asian populous countries? Renewable and Sustainable Energy Reviews, 77, 506–514. https://doi.org/10.1016/j.rser.2017.04.041
Roy, T. (2017). The economy of South Asia, the economy of South Asia. Springer International Publishing. https://doi.org/10.1007/978-3-319-54720-6
Sadorsky, P. (2014). The effect of urbanization on CO2 emissions in emerging economies. Energy Economics, 41, 147–153. https://doi.org/10.1016/j.eneco.2013.11.007
Sarpong, S. Y., & Bein, M. A. (2020). The relationship between good governance and CO2 emissions in oil- and non-oil-producing countries: A dynamic panel study of sub-Saharan Africa. Environmental Science and Pollution Research, 27, 21986–22003. https://doi.org/10.1007/S11356-020-08680-W/TABLES/7
Tamazian, A., Chousa, J. P., & Vadlamannati, K. C. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37, 246–253.
Ulucak, R., Danish, & Khan, S. U. D. (2020). Does information and communication technology affect CO2 mitigation under the pathway of sustainable development during the mode of globalization? Sustainable Development, 28, 857–867. https://doi.org/10.1002/sd.2041
Usman, A., Ozturk, I., Ullah, S., & Hassan, A. (2021). Does ICT have symmetric or asymmetric effects on CO2 emissions? Evidence from selected Asian economies. Technology in Society, 67, 101692. https://doi.org/10.1016/J.TECHSOC.2021.101692
Wang, Z., Danish, Zhang, B., & Wang, B. (2018). The moderating role of corruption between economic growth and CO2 emissions: Evidence from BRICS economies. Energy, 148, 506–513. https://doi.org/10.1016/j.energy.2018.01.167
WGI. (2020). Worldwide governance indicators | DataBank [WWW Document]. World Bank.
Williams, E. (2011). Environmental effects of information and communications technologies. Nature. https://doi.org/10.1038/nature10682
World Bank. (2009). South Asia: Shared views on development and climate change - World | ReliefWeb [WWW Document].
World Bank. (2021). World development indicators (WDI) [WWW Document]. World Bank.
Zaman, K., Abdullah, A. B., Khan, A., Nasir, M. R. B. M., Hamzah, T. A. A. T., & Hussain, S. (2016a). Dynamic linkages among energy consumption, environment, health and wealth in BRICS countries: Green growth key to sustainable development. Renewable and Sustainable Energy Reviews, 56, 1263–1271. https://doi.org/10.1016/J.RSER.2015.12.010
Zaman, K., Shahbaz, M., Loganathan, N., & Raza, S. A. (2016b). Tourism development, energy consumption and environmental Kuznets curve: Trivariate analysis in the panel of developed and developing countries. Tourism Management, 54, 275–283. https://doi.org/10.1016/J.TOURMAN.2015.12.001
Zhang, C., & Liu, C. (2015). The impact of ICT industry on CO2 emissions: A regional analysis in China. Renewable and Sustainable Energy Reviews. https://doi.org/10.1016/j.rser.2014.12.011
Zhang, N., Yu, K., & Chen, Z. (2017). How does urbanization affect carbon dioxide emissions? A cross-country panel data analysis. Energy Policy, 107, 678–687. https://doi.org/10.1016/J.ENPOL.2017.03.072
Zoundi, Z. (2017). CO2 emissions, renewable energy and the environmental Kuznets curve, a panel cointegration approach. Renewable and Sustainable Energy Reviews, 72, 1067–1075. https://doi.org/10.1016/j.rser.2016.10.018
Yao, F., Zhu, H., Wang, M. (2021). The impact of multiple dimensions of urbanization on CO2 emissions: A spatial and threshold analysis of panel data on China’s prefecture-level cities. Sustainable Cities and Society, 73, 103113. https://doi.org/10.1016/J.SCS.2021.103113
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Kakar, A., Khan, A. & Khan, A. Analyzing the Role of Governance, ICT, and Urbanization on Environment in South Asian Countries. J Knowl Econ (2023). https://doi.org/10.1007/s13132-023-01288-8
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s13132-023-01288-8