Disaggregated energy consumption, environment, and economic growth nexus of emerging South and East Asian Countries: An ARDL approach

This study examines the nexus between disaggregated energy consumption (EC), CO2 emissions, and economic growth in emerging South and East Asian countries over the period of 1994 to 2019. The long-run equilibrium relationship is determined by using the "Autoregressive distributed lag (ARDL) model" and the "Generalized least square (GLS) technique." The panel causality test developed by "Dumitrescu and Hurlin, 2012" determines the direction of causation between variables. Disaggregated EC and CO2 emissions positively affect economic growth in the research. The PMG estimate also validates the GLS findings, which produce the same results as the PMG estimation. To check the robustness, we also use FMOLS and DOLS estimators. The results confirm the feedback hypothesis for South and East Asian nations regarding energy uses, CO2 emissions, and economic growth. In contrast, there is unidirectional causality between industrial development and economic growth. These findings will help governments in South and East Asia craft effective energy policy regulations for their financial institutions.