Economic growth and methane emission: testing the EKC hypothesis in ASEAN economies

Abstract

Purpose

The purpose of this study is to analyze the Environmental Kuznets Curve (EKC) hypothesis within the methane (CH₄) emission–economic growth nexus among the six Association of Southeast Asian Nations (ASEAN) countries from 1985 to 2012.

Design/methodology/approach

The study employs dynamic panel data estimation approaches such as mean group (MG) and pooled MG (PMG) techniques.

Findings

The findings reveal that the EKC hypothesis for the CH₄ emission in these economies proves to be valid. In other words, economic growth causes CH₄ emissions to decrease. Nevertheless, energy consumption is deteriorating the environment by enhancing CH₄ emissions in these countries.

Originality/value

The ASEAN region has experienced substantial economic growth over the previous few decades. Nevertheless, pollution has also increased manifolds in this region. Methane is a more potent greenhouse gas (GHG) as compared to carbon dioxide (CO₂) and a major source of socio-economic issues in the ASEAN region. This study is the first in the existing literature on the EKC hypothesis examining the role of economic growth on CH₄ emissions in the selected ASEAN countries. The outcomes of this study could be really beneficial for the policymakers in this region regarding sustainability and economic development.

Citation

Adeel-Farooq, R.M., Raji, J.O. and Adeleye, B.N. (2021), "Economic growth and methane emission: testing the EKC hypothesis in ASEAN economies", Management of Environmental Quality, Vol. 32 No. 2, pp. 277-289. https://doi.org/10.1108/MEQ-07-2020-0149