Abstract
This study assesses the influence of industrialization and energy consumption on the environmental sustainability for seven Asian emerging economies over the period 1990–2022 by using Panel ARDL estimation technique. Results show that industrialization adversely impacts environmental sustainability in the long run by discharging CO2, while energy consumption has a favourable environmental impact. In the short run, both factors have demonstrated overall as well as country specific adverse effects. Further, Dumitrescu Hurlin Panel causality results reported uni directional causal relationship moving from industrialization and energy consumption to carbon dioxide discharges. These results indicates that efforts of Asian emerging economies towards environmental sustainability are not sufficient. This study recommends policymakers consider different sustainability frameworks, increase awareness regarding adoption of environmental positive activities, and allocate more funding for environmental protection and technological innovation.
TopIntroduction
The industry is often regarded as the lifeblood of any country, which ensures the socio-economic prosperity of that country and also helps that country to become self-reliant (Mgbemene, Nnaji & Nwozor, 2016; Singh & Kumar, 2023). The development of industrial activities often drives the level of manufacturing outputs. According to Kaldor’s law, the growth in the manufacturing sector promotes economic development through several channels. Growth in the manufacturing sector enhances productivity and it absorbs a hung chunk of labour force from the labour market (Facevicova & Kynclova, 2020). Here, economies of scale, technical innovation, and higher labour productivity play a critical role in driving up productivity through lowering average production costs and increasing the level of manufacturing output (Millemaci & Ofria, 2014). This increase in manufacturing output eventually accelerates the economic development of a country (Mercan, Kızılkaya & Okde, 2015).
Key Terms in this Chapter
Inequality: It represents the unequal distribution of resources among a nation's citizens.
Economies of Scale: It is a phenomenon in which an organization starts to obtain a cost advantage as a result of increasing the number of units it manufactures.
Economic Development: This can be regarded as the process by which a nation enhances their capacity for production, generates wealth and improves the standard of life for its citizens.
Environmental Sustainability: This concept advocates responsible human behaviour and economic advancement without endangering the environment.
Labour Productivity: It assesses how many goods or services that an employee is able to produce in a given time, typically in an hour.
Industrialization: It is the process by which a nation shapes its economy, shifting its dependence from agricultural to manufacturing.
Renewable Energy: It is regarded as energy that does not run out and is naturally regenerated.