Assessing the nexus between energy consumption, urbanization, and carbon dioxide emissions: does human capital matter?

This study is intended to add to the existing body of knowledge by examining the relationship between environmental pollution, human capital, energy use, and urbanization in 7 selected ASEAN (Association of South East Asian Nations) countries from 1990 to 2019. The cross-section augmented Dickey-Fuller and cross-section augmented Im, Pesaran, and Shin (CADF and CIPS) are applied based on the cross-sectional independence test results, and the feasible generalized least squares (FGLS) and the spatial correlation consistent standard error (PSCC) are employed for empirical results. The findings indicated that the variables have a positive long-run relationship. The human capital-energy consumption interaction contributed to environmental quality improvement. Thus, the study concludes that human capital is crucial in the energy-environment relationship. ASEAN nations are advised to adopt laws and treaties to provide a healthy environment that help to keep carbon dioxide emission as low as possible.