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Dynamic effects of fiscal and monetary policy instruments on environmental pollution in ASEAN

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Abstract

This study aims to re-examine the impacts of monetary and fiscal policy on environmental quality in ASEAN countries from 1990 to 2019. We utilized the panel and time series NARDL approach to explore the long-run and short-run estimates at a regional level and country level. ASEAN regional-wise analysis shows that contractionary monetary policy reduces the CO2 emissions, while expansionary monetary policy enhances CO2 emissions in the long run. The long-run coefficient further confirms that expansionary fiscal policy mitigates CO2 emissions in ASEAN. The impact of expansionary monetary and fiscal policy on CO2 emissions is positive and significant, while contractionary monetary and fiscal policy have an insignificant impact on CO2 emissions in the short run. ASEAN country-wise analysis also reported the country-specific estimates for the short and long run. Some policies can redesign in light of these novel findings in ASEAN economies.

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The datasets/materials used and/or analyzed for the present manuscript are available from the corresponding author on reasonable request.

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Author information

Authors and Affiliations

  1. School of Economics, Xi’an Jiaotong University, Xi’an, Shaanxi, China

    Nafessa Mughal

  2. Department of Management Sciences, COMSATS, Islamabad, Attock campus, Pakistan

    Maryam Kashif

  3. Department of Economics, University of Wah, Wah Cantt, 47040, Pakistan

    Asma Arif

  4. Department of Energy, Universidad de la Costa, Barranquilla, Colombia

    John William Grimaldo Guerrero

  5. Northwestern Mindanao State College of Science and Technology, Tangub, Philippines

    Wilson C. Nabua

  6. Department of Biosystems Engineering, Faculty of Environmental and Mechanical Engineering, Poznań University of Life Sciences, Wojska Polskiego 50, 60-627, Poznań, Poland

    Gniewko Niedbała

Authors
  1. Nafessa Mughal
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  2. Maryam Kashif
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  3. Asma Arif
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  4. John William Grimaldo Guerrero
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  5. Wilson C. Nabua
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  6. Gniewko Niedbała
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Contributions

The idea was given by Nafeesa Mughal and Maryam Kashif. Maryam Kashif, Asma Arif, John William Grimaldo Guerrero, Wilson C. Nabua, and Gniewko Niedbala have done the data acquisitions and analysis and written the whole draft. Nafeesa Mughal and Maryam Kashif read and approved the final version.

Corresponding author

Correspondence to Maryam Kashif.

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Mughal, N., Kashif, M., Arif, A. et al. Dynamic effects of fiscal and monetary policy instruments on environmental pollution in ASEAN. Environ Sci Pollut Res 28, 65116–65126 (2021). https://doi.org/10.1007/s11356-021-15114-8

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  • DOI: https://doi.org/10.1007/s11356-021-15114-8

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