Open Access Journal Article

Unraveling the impact of energy demand and exports on environment and economy: A case study of South Asian Economies

by Kiran Batool a,* Muhammad Adeel b  and  Abdulhalim Musa Abubakar c
a
Beijing Key Laboratory of New Energy and Low Carbon Development, School of Economics and Management, North China Electric Power University, Beijing, China
b
School of Mechanical Engineering and Automation, Beihang University, Beijing, China
c
Department of Chemical Engineering, Faculty of Engineering, Modibbo Adama University (MAU), P.M.B 2072, Girei LGA, Adamawa State, Nigeria
*
Author to whom correspondence should be addressed.
Received: 19 December 2023 / Accepted: 8 April 2024 / Published Online: 8 July 2024

Abstract

This study employs empirical analysis using an econometric model that examines the interdependence among environmental degradation, exports, and economic development with energy use. It also provides an environmental Kuznets curve (EKC) for selected South Asian economies utilizing time-series data. The findings reveal a long-term, stable equilibrium link between energy demand and pollution. There exists a positive relationship between structural factors and pollution. Moreover, this study constructs a model of exports and pollution from an interdependent perspective. The three perspectives are tested: the scale and structure of energy consumption considering the twin constraints of export-trade and pollution, and the scale of pollution in export-trade constraint. These results show that the increase in energy use leads to higher CO2 emissions amidst export volume. However, in the presence of income, the scale of effect lowers a little. The analysis also supports the presence of Kuznets curve for south-Asian economies. The results imply substantial scope for development in the energy use and pollution structure within South Asia's current export trade process. This development can be attained by regulating energy use and enhancing system efficacy without necessitating changes to the scale effect or structural effect.


Copyright: © 2024 by Batool, Adeel and Abubakar. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Share and Cite

ACS Style
Batool, K.; Adeel, M.; Abubakar, A. M. Unraveling the impact of energy demand and exports on environment and economy: A case study of South Asian Economies. Energy Technologies and Environment, 2024, 2, 18. https://doi.org/10.58567/ete02030003
AMA Style
Batool K, Adeel M, Abubakar A M. Unraveling the impact of energy demand and exports on environment and economy: A case study of South Asian Economies. Energy Technologies and Environment; 2024, 2(3):18. https://doi.org/10.58567/ete02030003
Chicago/Turabian Style
Batool, Kiran; Adeel, Muhammad; Abubakar, Abdulhalim M. 2024. "Unraveling the impact of energy demand and exports on environment and economy: A case study of South Asian Economies" Energy Technologies and Environment 2, no.3:18. https://doi.org/10.58567/ete02030003
APA style
Batool, K., Adeel, M., & Abubakar, A. M. (2024). Unraveling the impact of energy demand and exports on environment and economy: A case study of South Asian Economies. Energy Technologies and Environment, 2(3), 18. https://doi.org/10.58567/ete02030003

Article Metrics

Article Access Statistics

References

  1. Ahsan, M. R. (2021). Challenges and opportunities concerning Environmental Goods (EGs): a case study and business perspective. Society and Business Review, 16(2), 184-200. https://doi.org/10.1108/SBR-07-2020-0088
  2. Ahsan, M. R., & Chu, S. N. (2014). The Potential and Constraints of the Exports of Environmental Goods (EGs): the case of Bangladesh. The Australian National University, Australia South Asia Research Centre.
  3. Azhar, U., Khalil, S., & Ahmed, M. H. (2007). Environmental effects of trade liberalisation: a case study of Pakistan. The Pakistan Development Review, 645-655. http://dx.doi.org/10.30541/v46i4IIpp.645-655
  4. Batool, Kiran, Zhen Yu Zhao, Faraz Atif, and Azer Dilanchiev. (2022). Nexus Between Energy Poverty and Technological Innovations: A Pathway for Addressing Energy Sustainability. Frontiers in Environmental Science 10(July), 1–18. http://dx.doi.org/10.3389/fenvs.2022.888080
  5. Batool, Kiran, Zhen Yu Zhao, Muhammad Irfan, and Justyna Żywiołek. (2023). Assessing the Role of Sustainable Strategies in Alleviating Energy Poverty: An Environmental Sustainability Paradigm. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-023-27076-0
  6. Batool, Kiran, Zhen Yu Zhao, Muhammad Irfan, Sami Ullah, et al. (2023). Assessing the Competitiveness of Indian Solar Power Industry Using the Extended Five Forces Model: A Green Innovation Perspective. Environmental Science and Pollution Research, 1–25. http://dx.doi.org/10.1007/s11356-023-28140-5
  7. Batool, Kiran, Zhen-Yu Zhao, Huaping Sun, and Muhammad Irfan. (2023). Modeling the Impact of Energy Poverty on Income Poverty, Health Poverty, Educational Poverty, and Environmental Poverty: A Roadmap towards Environmental Sustainability. Environmental Science and Pollution Research 30(36), 85276–91. https://doi.org/10.1007/s11356-023-28238-w
  8. Batool, Kiran, Zhen-Yu Zhao, Naila Nureen, and Muhammad Irfan. (2023). Assessing and Prioritizing Biogas Barriers to Alleviate Energy Poverty in Pakistan: An Integrated AHP and G-TOPSIS Model. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-023-28767-4
  9. Bharucha, V. (1997). The Impact of Environmental Standards and Regulations set in foreign Markets on India's Exports. In Trade, Environment & Sustainable Development: A South Asian Perspective (pp. 123-142). London: Palgrave Macmillan UK.
  10. Brooks, D. H. (1998). Challenges for Asia's trade and environment.
  11. Dahal, K., & Pandey, P. R. (2018). Green growth and trade in environmental goods and services: a south Asian perspective (No. wp/18/01).
  12. Feix, R. D., Miranda, S. H. G. D., & Barros, G. S. A. D. C. (2008). Environmental regulation and international trade patterns for agro-industrial under a South-North perspective (No. 725-2016-49633).
  13. Goldar, A., Bhanot, J., & Shimpo, K. (2011). Prioritizing towards a green export portfolio for India: An environmental input–output approach. Energy Policy, 39(11), 7036-7048. https://doi.org/10.1016/j.enpol.2011.08.008
  14. Gore, M., & Annachhatre, M. (2019). Trade-off between India's trade promotion and its environmental sustainability. European Journal of Sustainable Development, 8(3), 405-405. https://doi.org/10.14207/ejsd.2019.v8n3p405
  15. He, Q., Fang, H., Wang, M., & Peng, B. (2015). Trade liberalization and trade performance of environmental goods: evidence from Asia-Pacific economic cooperation members. Applied Economics, 47(29), 3021-3039. https://doi.org/10.1080/00036846.2015.1011319
  16. Hettige, H., Huq, M., Pargal, S., & Wheeler, D. (1996). Determinants of pollution abatement in developing countries: evidence from South and Southeast Asia. World development, 24(12), 1891-1904. https://doi.org/10.1016/S0305-750X(96)00076-9
  17. Hewison, G., Jha, V., & Underhill, M. (Eds.). (1997). Trade, environment and sustainable development: A South Asian perspective. Springer.
  18. Jomit, C. P. (2014). Export potential of environmental goods in India: A gravity model analysis. Transnational Corporations Review, 6(2), 115-131. https://doi.org/10.1080/19186444.2014.11658386
  19. Kalirajan, K. (2016). Export of environmental goods: India's potential and constraints. Environment and Development Economics, 21(2), 158-179. https://doi.org/10.1017/S1355770X15000224
  20. Kapuria, P. (2010). Shrimp exports, environment and human well-being in the Sundarbans, West Bengal. Vulnerable Places, Vulnerable People, 63.
  21. Mahmood, H. (2022). Consumption and Territory Based CO 2 Emissions, Renewable Energy Consumption, Exports and Imports Nexus in South America: Spatial Analyses. Polish Journal of Environmental Studies, 31(2). https://doi.org/10.1016/j.eneco.2019.104632
  22. Mahmood, M. T., & Shahab, S. (2014). Energy, emissions and the economy: empirical analysis from Pakistan. The Pakistan Development Review, 383-400. https://www.jstor.org/stable/24398726
  23. Mahmood, M. T., Shahab, S., & Hafeez, M. (2020). Energy capacity, industrial production, and the environment: an empirical analysis from Pakistan. Environmental Science and Pollution Research, 27(5), 4830-4839. https://doi.org/10.1007/s11356-019-07161-z
  24. Mahmood, M. T., Shahab, S., & Shahbaz, M. (2022). The relevance of economic freedom for energy, environment, and economic growth in Asia-Pacific region. Environmental Science and Pollution Research, 29(4), 5396-5405. https://link.springer.com/article/10.1007%2Fs11356-021-15991-z
  25. Mohanty, S. K. (2014). Environmentally Sensitive Goods in India's Trade: Emerging Challenges and Prospects. Globalization and Standards: Issues and Challenges in Indian Business, 61-100.
  26. Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. Review of Economics and statistics, 83(4), 727-731. http://dx.doi.org/10.35866/caujed.2019.44.1.004
  27. Rahman, M. M., & Alam, K. (2022). CO2 Emissions in Asia–Pacific region: do energy use, economic growth, financial development, and international trade have detrimental effects?. Sustainability, 14(9), 5420. https://doi.org/10.3390/su14095420
  28. Sankar, U. (2007). Trade and environment: a study of India's leather exports. Oxford University Press.
  29. Sun, Huaping, Tingting Chen, and Christoph Nedopil Wang. 2023. Spatial Impact of Digital Finance on Carbon Productivity. Geoscience Frontiers: 101674. https://www.sciencedirect.com/science/article/pii/S167498712300141X.
  30. Utkarsh, G. (2001). South Asian Studies: Environment.
  31. Wang, S., Pan, M., & Wu, X. (2023). Sustainable Development in the Export Trade from a Symbiotic Perspective on Carbon Emissions, Exemplified by the Case of Guangdong, China. Sustainability, 15(12), 9667. https://doi.org/10.3390/su15129667
  32. Wijesinghe, W. P. A. S. (2014). Effects of environmental regulations on South Asian food and agricultural exports: A gravity analysis (No. 139). ARTNeT Working Paper Series.
  33. Zeren, F., & Akkuş, H. T. (2020). The relationship between renewable energy consumption and trade openness: New evidence from emerging economies. Renewable Energy, 147, 322-329. https://doi.org/10.1016/j.renene.2019.09.006