Carbon dioxide emissions and the Environmental Kuznets Curve: evidence from the Association of Southeast Asian Nations.

We examined the relationship of carbon dioxide (CO ₂ ) emissions with real per capita GDP and energy consumption in the ASEAN region using panel data from 1960 to 2021. We employed various panel unit root tests (IPS, Fisher-ADF, Fisher-PP) and panel cointegration tests (Kao and Pedroni). We find robust empirical evidence supporting the validity of the Environmental Kuznets Curve hypothesis, suggesting the existence of a per capita income turning point (approximately USD 4,808.85) where CO ₂ emissions and real income begin to decouple. This suggests the presence of an environmentally sustainable economic growth path beyond this threshold. The study highlights the importance of a reduction of fossil fuel use and the adoption of coordinated strategic plans among ASEAN member states to reduce carbon dioxide emissions.
(© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)