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Dynamic nexus between transportation, urbanization, economic growth and environmental pollution in ASEAN countries: does environmental regulations matter?

  • Applied Economics of Energy and Environment in Sustainability
  • Published:
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Abstract

Prior studies on environmental standards have highlighted the significance of urbanization and transportation in affecting environmental sustainability worldwide. As the empirical and theoretical debates are still unresolved and divisive, the argument of whether urbanization, transportation and economic growth in Association of Southeast Asian Nations (ASEAN) countries cause greenhouse gas (GHG) emissions remains unclear. This study aim is to examine dynamic linkage between transportation, urbanization, economic growth and GHG emissions, as well as the impact of environmental regulations on GHG emission reduction in ASEAN countries over the years 1995–2018. On methodological aspects, the study accompanies a few environmental studies that check the cross-sectional dependence and slope heterogeneity issues. Moreover, the new cross-sectionally augmented autoregressive distributed lags (CS-ARDL) methodology is also applied in the study to estimate the short-run and long-run effects of the factors on GHG emissions. Substantial evidence is provided that GHG emissions increase with transportation, urbanization and economic growth but decrease with the imposition of environmental-related taxations. Augmented mean group (AMG) and common correlated effect mean group (CCEMG) also support the findings of CS-ARDL estimates. Finally, the study calls for drastic actions in ASEAN countries to reduce GHG emissions, including environmentally friendly transportation services and environmental regulation taxes. This study also provides the guidelines to the regulators while developing policies related to control the GHG emission in the country.

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The data that support the findings of this study are attached.

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It is declared that there are no human participants, human data, or human tissues.

Notes

  1. However, there is an ambiguity that either it is the economic development or urbanization that stimulates transport infrastructure development or it is the transport infrastructural development that accelerates economic development and urbanization (Maparu & Mazumder 2017). In a specific region, transportation infrastructure development boosts economic activity and labour demand and makes accessibility easier and living conditions better. These beneficial effects may enhance industrialization, urbanization and economic growth. On the contrary, concentration of people and economic developments in urban areas can generate demand and lead to infrastructural development. Nonetheless, the energy consumption by the road sector may be affected by migration to urban areas, industrialization and social and economic development connected with road infrastructure (Wang, Ahmed, Zhang, & Wang, 2019).

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Authors and Affiliations

  1. School of Economics and Management, Guangdong University of Petrochemical Technology (GUTP), Maoming, 525000, China

    Shi-Zheng Huang

  2. School of Accounting and Finance, Faculty of Business and Law, Taylor’s University, Subang Jaya, Malaysia

    Muhammad Sadiq

  3. School of Finance and Accounting, Fuzhou University of International Studies and Trade, Fuzhou, China

    Fengsheng Chien

  4. Faculty of Business, City University of Macau, Macau, China

    Fengsheng Chien

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  1. Shi-Zheng Huang
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  2. Muhammad Sadiq
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  3. Fengsheng Chien
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Shi-Zheng Huang: Conceptualization, writing—original draft. Muhammad Sadiq: Data curation, writing—literature review and editing. Fengsheng Chien: software, visualization, supervision, methodology.

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Huang, SZ., Sadiq, M. & Chien, F. Dynamic nexus between transportation, urbanization, economic growth and environmental pollution in ASEAN countries: does environmental regulations matter?. Environ Sci Pollut Res 30, 42813–42828 (2023). https://doi.org/10.1007/s11356-021-17533-z

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