How do Population and Poverty Affect Environmental Degradation in Developing Countries? A Panel Data Analysis
DOI:
https://doi.org/10.47067/ramss.v3i1.27Keywords:
Rural and urban Population, Poverty, CO2emission, Fully ModifiedOLSAbstract
This study aims to envisage empirically how the rural and urban population, as well as poverty, affects the CO2emission.The panel data isused to coverthe time frame from1990 to 2015 for the D-8 countries except Indonesia due to the non-availability of the data of some variable. To check the stationarity of the panel data Levin, LinandChu'stestis applied. Kaoand PanelG ranger causality tests are also used for panel cointegration and panel causality respectively. A fully Modified OLS estimator is applied to check the long-run relationship.The results Indicate that the rural population and poverty are statistically significant and are negatively associated with CO2 emissions. Realgross domestic products (GDP) and trade open nessalso exerta positive and statistically significant influenceon CO2 emission.Moreover,the results conclude that a one percent change in real GDP will cause a 0.32 percent change in CO2 emission.Employing the granger causality technique there is evidence of a significant bidirectional causal relationship between CO2 emission and Real GDP. Further more,between CO2 and poverty, a bidirectional causal relationship is found. Besides, it is un idirectional relationship between CO2 emissions and trade openness. The finding soft he study suggest the reisadireneed for the developing nation stoinvestin human capabilities to promote the consumption of poor people to eradicate absolute poverty. The study suggests adopting the low carbon emission technologies, aiming to sustain economic growth and reduce CO2 emission which may include energy efficiency and switch torenewable energy from non-renewable energy.
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