Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration: A New Perspective | Chapter 6 | Emerging Issues and Development in Economics and Trade Vol. 4
Aims:
This study examined the short-run and long-run dynamic relationship between
economic growth and environmental pollution in Brunei. We adopted Auto
Regressive Distributed Lag (ARDL) model to scrutinize the existence of the
Environmental Kuznets Curve (EKC) among the studying variables by using time
series data cover the period of 1974 to 2014.
Methodology: The ARDL bound test revealed the existence of a long-run
relationship among the integrated variables when CO2 chosen as a dependent
variable. Results: The results support the existences of EKC hypotheses in the
long-run whereas in the shortrun an inverted U-shaped curve was not confirmed
between GDP and CO2 in Brunei. The results of Granger causality based on VECM
analysis have shown unidirectional causality runs from economic growth to CO2
in the short-run. Further analysis through stability test indicates the
coefficients in the model are stable and do not suffer from structural break
within the time taken in the study. Conclusion: Bruneian government should
continue to support global environmental preservation policies to reduce the
emission of harmful gases into the atmosphere, applying a modern technology
that is not harming to the environment and consumes less energy to mitigate the
adverse impact of CO2 and other greenhouse gases in the country.
Author(s) Details
Issa Moh’d Hemed
Zanzibar University (ZU), P.O.Box 2440, Zanzibar, Tanzania.
View Book: - http://bp.bookpi.org/index.php/bpi/catalog/book/159
Author(s) Details
Issa Moh’d Hemed
Zanzibar University (ZU), P.O.Box 2440, Zanzibar, Tanzania.
View Book: - http://bp.bookpi.org/index.php/bpi/catalog/book/159
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