Do Diversified Export, Agriculture, and Cleaner Energy Consumption Induce Atmospheric Pollution in Asia? Application of Method of Moments Quantile Regression

Mubeen Abdur Rehman, Zeeshan Fareed, Sultan Salem, Asma Kanwal, Ugur Korkut Pata

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Abstract

Sustainable development remains unattainable unless we move to reduce the negative impact of economic factors on environmental quality. It is noteworthy to provide new evidence on whether and how the empirical association between export diversification, agricultural value-addition, renewable energy, and regulatory quality with greenhouse gas (GHG) emissions evolved in Asian countries from 1996 to 2014. The study examines the relationships between these variables using current panel data techniques. The econometric procedure includes second-generation cointegration and unit root tests together with a novel Method of Movements Quantile Regression (MMQR). This approach offers an asymmetric relationship between the variables and is very robust to outliers compared to traditional quantile regression. The empirical outcomes show that export diversification, renewable energy, and regulatory quality are significantly and negatively associated with GHG emissions. In contrast, agricultural value-added in Asia has become a source of increased GHG emissions. Our findings are also robust with alternate specifications, including fully modified, dynamic and fixed effect regressions. This study will help policymakers for diversifying their export portfolio while ensuring a sustainable environment in Asia.
Original languageEnglish
Article number781097
JournalFrontiers in Environmental Science
Volume9
DOIs
Publication statusPublished - 29 Oct 2021

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