Industrial practices and quality of environment: evidence for Asian economies.

The contemporary study takes under consideration some countries of Asia to find the co-integration and causal association between industrial growth and environmental degradation. To achieve this object, the data have been collected from 1986 to 2015. Study incorporates panel autoregressive distributed lag model and Pedroni co-integration method. All the variables are found to be stationary at first difference. In order to explore long-run relationship, we include the estimates of pool mean group. Findings demonstrate that industrialization, energy consumption and trade volume deteriorate the quality of environment in long-run. However, short-run results indicate unidirectional causality running from industry value added per capita to CO₂ emission, while energy consumption exhibits bidirectional causality with CO₂ emission. The study asserts that there is need of hour to formulate and execute efficient environmental-friendly policies, specifically in industrial sector. [ABSTRACT FROM AUTHOR]