Determinants of Environmental Degradation in Bangladesh: A Dynamic ARDL Framework

Authors

  • Tamanna Siddiqua Ratna Department of Quantitative Sciences, International University of Business Agriculture and Technology (IUBAT), Dhaka, Bangladesh.
  • Tanzin Akhter Department of Quantitative Sciences, International University of Business Agriculture and Technology (IUBAT), Dhaka, Bangladesh.
  • Adnan Chowdhury Bangladesh Bank Head Office, Dhaka, Bangladesh.
  • Ferdous Ahmed Corresponding author. Department of Environmental Science, International University of Business Agriculture and Technology (IUBAT), Dhaka, Bangladesh.

DOI:

https://doi.org/10.22452/IJIE.vol17no4.2

Keywords:

CO2 emission, Tourism, Energy consumption, Urbanisation, ARDL bounds test

Abstract

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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Published

2025-11-18

How to Cite

Tamanna Siddiqua Ratna, Tanzin Akhter, Adnan Chowdhury, & Ferdous Ahmed. (2025). Determinants of Environmental Degradation in Bangladesh: A Dynamic ARDL Framework. Institutions and Economies, 17(4), 27–54. https://doi.org/10.22452/IJIE.vol17no4.2

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Section

Articles