Abstract:

Urbanization and industrialization are key factors of economic growth in most of countries which required a lot of energy use, but all the variables are the threat to environmental degradation. The present work is an attempt to test empirically the impact of urbanization, industrialization, growth of economy and energy consumption in four highly populated Asian countries (China, India, Indonesia, Pakistan). The study collected panel data for the span of 1975 to 2018. This study adopted Panel Cointegration and Granger causality technique. The estimates of panel cointegration confirmed long run cointegration between urbanization, industrialization, economic growth, energy consumption and environmental degradation. In addition, the results confirmed positive impact of energy consumtion and economic growth on CO2 emissions which means that both the variables are harmful for environment in the long term. Furthermore, urbanization as well as industrialization is demonstrating negative influence the emissions of CO2 which suggests urbanization and industrialization not have negative effect environment in the selected countries, in the long term. The results of granger causality test confirm three uni-directional causalities as well as three bi-directional causalities among the variables. On the basis of the study results, efficieny in enrgy use is the must for sustainable development and environment in the selected countries.

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