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Influence of Economic Growth, Energy Production, and Subcomponents on the Environment: A Regional Level Analytical Modeling

Author

Listed:
  • Syed Asif Ali Naqvi

    (Department of Economics, Government College University, Faisalabad 38000, Pakistan)

  • Bilal Hussain

    (Department of Economics, Government College University, Faisalabad 38000, Pakistan)

  • Ashfaq Ahmad Shah

    (Research Center for Environment and Society, Hohai University, Nanjing 210098, China)

  • Muhammad Atiq Ur Rehman Tariq

    (College of Engineering, IT & Environment, Charles Darwin University, Darwin, NT 0810, Australia
    College of Engineering and Science, Victoria University, P.O. Box 14428, Melbourne, VIC 8001, Australia
    Institute for Sustainable Industries & Liveable Cities, Victoria University, P.O. Box 14428, Melbourne, VIC 8001, Australia)

  • Muhammad Usman

    (Department of Economics, Government College University, Faisalabad 38000, Pakistan)

Abstract
This study examines the long-term impact of energy production and economic growth on the environment using data on real GDP, energy production (and its subcomponents), carbon dioxide emissions, and real foreign trade. The datasets contain 99 countries that are classified into seven regions and analyzed by using MG, AMG, and CCEMG estimators. Estimates reflect that economic growth increases environmental pollution while foreign trade decreases it in all selected regions. In analyzing the conservation and neutrality hypotheses, we found that the conservation hypothesis was successfully verified for the global panel, Europe, and Africa, whereas the former was verified in North America, the Middle East, and the Asia Pacific regions. The study suggests focusing on renewable energy production policies to sustain the current growth pace.

Suggested Citation

  • Syed Asif Ali Naqvi & Bilal Hussain & Ashfaq Ahmad Shah & Muhammad Atiq Ur Rehman Tariq & Muhammad Usman, 2022. "Influence of Economic Growth, Energy Production, and Subcomponents on the Environment: A Regional Level Analytical Modeling," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15446-:d:979217
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