Urbanization, Economic Growth and GHG Emissions Nexus in South Asia: Evidence from Panel ARDL Model

Abstract

Due to growing global urbanization and ongoing discussions about climate fluctuations resulting from increased greenhouse gas emissions, this study was initiated to examine the relationship between urbanization, greenhouse gas emissions, and economic growth rates. To address this, panel data from 1993 to 2022 were collected for four selected South Asian nations: Pakistan, India, Bangladesh, and Sri Lanka. After determining the mixed order of integration and confirming a stable long-run relationship among the variables, the ARDL/PMG approach was utilized to estimate the model coefficients. The findings show that, in India, both greenhouse gas emissions and GDP negatively impact urbanization. In Pakistan and Bangladesh, greenhouse gas emissions have a positive effect; for Pakistan, the GDP coefficient is negative, while for Bangladesh, it is positive. Both variables show positive effects in Sri Lanka.