Environmental Quality and Economic Growth: An empirical analysis in Asian countries

Siew Huay Chong; Yin Li Tun; Said Zamin Shah; Ratneswary Rasiah

doi:10.21834/ebpj.v7i21.3676

Authors

Siew Huay Chong Department of Economics and Financial Studies, Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia
Yin Li Tun Faculty of Accountancy and Management, Department of Economics, UTAR, Malaysia
Said Zamin Shah Department of Economics, Islamia College University Peshawar, Khyber Pakhtunkhwa, Pakistan
Ratneswary Rasiah Saito University College Malaysia

DOI:

https://doi.org/10.21834/ebpj.v7i21.3676

Keywords:

Environmental Quality, Economic Growth, Asian Countries, PMG

Abstract

This study investigates the relationship between environmental quality and economic growth in Asian countries. The findings from Pooled Mean Group (PMG) estimator affirmed the existence of a long-run relationship between environmental quality and economic development. The higher the economic growth, the higher the CO2 consumption. In the short run, economic growth exacts no harmful impact. Researchers and policymakers should be careful about the effect of economic growth and rising incomes on environmental pollution with the prioritisation of sustainable usage of environmental policy. Investment and consumption of renewable energy that is less harmful to the environment should be focused on minimising environmental pollution.

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