Drivers of greenhouse gas emissions in Southeast and East Asia

This study examines the drivers of greenhouse gas (GHG) emissions for a sample of 16 countries in the Association of Southeast Asian Nations (ASEAN) and East Asia during 1995–2012 (the latest data available). The baseline model of this study is built on a theoretical framework that bridges and extends the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model and the environmental Kuznets curve (EKC) hypothesis. Four types of GHG emissions are considered for comparison and completeness. Panel corrected standard errors (PCSE) are employed as the main estimation technique, while feasible general least squares (FGLS) and Driscoll-Kraay standard error estimations are used to check the robustness of the empirical results. The principal findings are follows. Urbanisation, trade openness, and financial development reduce the major types of GHG emissions. Meanwhile, energy and foreign direct investment (FDI) benefit the environment by reducing all types of GHG emissions. Interestingly, industrialisation appears to reduce emissions of GHGs, nitrous oxide (N₂O), and methane (CH₄) per capita but increase carbon dioxide (CO₂) emissions per capita. Population growth is found to impact GHG emissions positively but insignificantly. The findings of this study support an integrated approach to reforming economic policies to tackle environmental challenges.