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

Rana Muhammad Adeel-Farooq (Department of Economics, University of Sahiwal, Sahiwal, Pakistan)
Jimoh Olajide Raji (Department of Finance, SEFB, Universiti Utara Malaysia, Sintok, Malaysia)
Bosede Ngozi Adeleye (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)

Management of Environmental Quality

ISSN: 1477-7835

Article publication date: 16 October 2020

Issue publication date: 10 February 2021

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.

Keywords

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

Publisher

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Emerald Publishing Limited

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