Carbon dioxide emissions and the Environmental Kuznets Curve: evidence from the Association of Southeast Asian Nations

We examined the relationship of carbon dioxide (CO2) emissions with real per capita GDP and energy consumption in the ASEAN region using panel data from 1960 to 2021. We employed various panel unit root tests (IPS, Fisher-ADF, Fisher-PP) and panel cointegration tests (Kao and Pedroni). We find robust empirical evidence supporting the validity of the Environmental Kuznets Curve hypothesis, suggesting the existence of a per capita income turning point (approximately USD 4,808.85) where CO2 emissions and real income begin to decouple. This suggests the presence of an environmentally sustainable economic growth path beyond this threshold. The study highlights the importance of a reduction of fossil fuel use and the adoption of coordinated strategic plans among ASEAN member states to reduce carbon dioxide emissions.