Determinants of Environmental Degradation in Bangladesh: A Dynamic ARDL Framework
DOI:
https://doi.org/10.22452/IJIE.vol17no4.2Keywords:
CO2 emission, Tourism, Energy consumption, Urbanisation, ARDL bounds testAbstract
Bangladesh, as an emerging developing country, has been using energy
intensively in various industrial and socioeconomic sectors without much consideration
of environmental sustainability. Therefore, this research aims to explain the impact of
tourism, urbanisation, and energy consumption on carbon dioxide emissions, used here
as an indicator variable of environmental degradation. A dynamic time series analysis is
applied in this study by considering yearly data from Bangladesh over the period of 1995
to 2019. After confirming the stationary status of the study variables, an autoregressive
distributed lag (ADRL) bounds test is applied, which reveals the long-run association
among the variables. Then, following the dynamic ARDL framework, the effects of
targeted variables were fixed in short and long-run periods. The findings reveal that all
variables are significant positive drivers of environmental pollution over the long run,
save for energy consumption. Moreover, the short-run results indicate that tourism and
energy consumption are both active contributors to pollution. The empirical findings
of this study will help policymakers to develop a sustainable urbanisation and tourism
expansion policy to minimise pollution levels. Finally, this study also supports reducing
carbon dioxide (CO2) emissions from the sectors targeting SDG 13, Climate Action by
2030.
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