Does sustainable environmental agenda matter? The role of globalization toward energy consumption, economic growth, and carbon dioxide emissions in South Asian countries

This study attempts to explore the environmental impacts of globalization under the umbrella of the EKC (environment Kuznets curve) approach in South Asia. For this reason, this study investigates the causality between energy usage and growth-driven CO2 emanations. The study adopts the FMOLS (fully modified OLS) technique for the econometric assessment, which portrays a significant demolish of environmental well-being in the region, whereas individual country, such as Nepal, also demonstrates a positive and significant effect of non-environmentally friendly power and globalization index on CO2 emanations. Nonetheless, negative as well as positive signs of GDP and its square (GDP)(2), respectively, validate the EKC theory in the sample region. Furthermore, the empirical finding reveals the feedback effect between economic growth (GDP) and energy usage. Despite this, GDP Granger causes CO2 emanations.