How do social and economic factors affect carbon emissions? New evidence from five ASEAN developing countries

This study analyzes the long and short-run impacts of social and economic factors on carbon emissions from five developing ASEAN countries during the period 1986-2017. Utilising a Pooled Mean Group Estimator, we find a nonlinear relationship between CO2 emissions and real GDP, confirming the Environmental Kuznets Curve. Our results indicate that energy consumption is the main driver of environmental degradation in these countries; and that FDI and urbanisation reduce carbon emissions. Our research indicates both a long-run and short-run nexus between government education expenditures and CO2 emissions. We conclude with policy suggestions to reduce CO2 emissions while attaining sustainable growth.