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Macroeconomic Factors Determining CO2 Emission in Bangladesh: Through the Lens of VECM Approach

Received: 28 September 2023     Accepted: 31 October 2023     Published: 11 November 2023
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Abstract

Never before has this planet encountered this kind of environmental crisis. Overall macroeconomic activities are inarguably linked to the worsening environmental quality. As a result, designing economic policies inevitably requires the knowledge of the factors that hurt the environment and lead to serious climatic conditions. Using secondary data from the year 1990 to 2021 and employing vector error correction model (VECM), this study attempts to determine the factors impacting carbon dioxide (CO2) emission in Bangladesh. The findings of this study show that GDP, total trade volume (TT) and energy consumption (EN) raise the level of CO2 emission in the short run and the effect of population (PO) is not statistically significant. The long-run model also substantiates that GDP, TT, EN and PO have positive impact on the CO2 emission. Though the use of renewable energy (RE) reduces emissions both in the short and long run, this effect is not statistically significant. These findings can help recognize the unintended losses incurred and formulate effectual policies for withstanding the pernicious effects of CO2 emission from a developing country perspective. Thus, this study significantly contributes to the appropriate policymaking activities that help developing nations around the world to sustainably achieve economic growth without hurting the environment.

Published in International Journal of Economy, Energy and Environment (Volume 8, Issue 5)
DOI 10.11648/j.ijeee.20230805.13
Page(s) 118-128
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

CO2 Emission, GDP, Energy Use, Trade Volume, Population, Environmental Quality, VECM, Bangladesh

References
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Cite This Article
  • APA Style

    Tanvir Ahmed, M., Ferdous, R. (2023). Macroeconomic Factors Determining CO2 Emission in Bangladesh: Through the Lens of VECM Approach. International Journal of Economy, Energy and Environment, 8(5), 118-128. https://doi.org/10.11648/j.ijeee.20230805.13

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    ACS Style

    Tanvir Ahmed, M.; Ferdous, R. Macroeconomic Factors Determining CO2 Emission in Bangladesh: Through the Lens of VECM Approach. Int. J. Econ. Energy Environ. 2023, 8(5), 118-128. doi: 10.11648/j.ijeee.20230805.13

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    AMA Style

    Tanvir Ahmed M, Ferdous R. Macroeconomic Factors Determining CO2 Emission in Bangladesh: Through the Lens of VECM Approach. Int J Econ Energy Environ. 2023;8(5):118-128. doi: 10.11648/j.ijeee.20230805.13

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  • @article{10.11648/j.ijeee.20230805.13,
      author = {Md. Tanvir Ahmed and Refat Ferdous},
      title = {Macroeconomic Factors Determining CO2 Emission in Bangladesh: Through the Lens of VECM Approach},
      journal = {International Journal of Economy, Energy and Environment},
      volume = {8},
      number = {5},
      pages = {118-128},
      doi = {10.11648/j.ijeee.20230805.13},
      url = {https://doi.org/10.11648/j.ijeee.20230805.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20230805.13},
      abstract = {Never before has this planet encountered this kind of environmental crisis. Overall macroeconomic activities are inarguably linked to the worsening environmental quality. As a result, designing economic policies inevitably requires the knowledge of the factors that hurt the environment and lead to serious climatic conditions. Using secondary data from the year 1990 to 2021 and employing vector error correction model (VECM), this study attempts to determine the factors impacting carbon dioxide (CO2) emission in Bangladesh. The findings of this study show that GDP, total trade volume (TT) and energy consumption (EN) raise the level of CO2 emission in the short run and the effect of population (PO) is not statistically significant. The long-run model also substantiates that GDP, TT, EN and PO have positive impact on the CO2 emission. Though the use of renewable energy (RE) reduces emissions both in the short and long run, this effect is not statistically significant. These findings can help recognize the unintended losses incurred and formulate effectual policies for withstanding the pernicious effects of CO2 emission from a developing country perspective. Thus, this study significantly contributes to the appropriate policymaking activities that help developing nations around the world to sustainably achieve economic growth without hurting the environment.
    },
     year = {2023}
    }
    

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    AU  - Md. Tanvir Ahmed
    AU  - Refat Ferdous
    Y1  - 2023/11/11
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    DO  - 10.11648/j.ijeee.20230805.13
    T2  - International Journal of Economy, Energy and Environment
    JF  - International Journal of Economy, Energy and Environment
    JO  - International Journal of Economy, Energy and Environment
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    EP  - 128
    PB  - Science Publishing Group
    SN  - 2575-5021
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    AB  - Never before has this planet encountered this kind of environmental crisis. Overall macroeconomic activities are inarguably linked to the worsening environmental quality. As a result, designing economic policies inevitably requires the knowledge of the factors that hurt the environment and lead to serious climatic conditions. Using secondary data from the year 1990 to 2021 and employing vector error correction model (VECM), this study attempts to determine the factors impacting carbon dioxide (CO2) emission in Bangladesh. The findings of this study show that GDP, total trade volume (TT) and energy consumption (EN) raise the level of CO2 emission in the short run and the effect of population (PO) is not statistically significant. The long-run model also substantiates that GDP, TT, EN and PO have positive impact on the CO2 emission. Though the use of renewable energy (RE) reduces emissions both in the short and long run, this effect is not statistically significant. These findings can help recognize the unintended losses incurred and formulate effectual policies for withstanding the pernicious effects of CO2 emission from a developing country perspective. Thus, this study significantly contributes to the appropriate policymaking activities that help developing nations around the world to sustainably achieve economic growth without hurting the environment.
    
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Author Information
  • Department of Economics, University of Barishal, Barishal, Bangladesh

  • Department of Economics, University of Barishal, Barishal, Bangladesh

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