Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission

This study scrutinizes the impact of globalization, non-renewable energy consumption, and economic growth on CO₂ emission for selected South Asian economies during 1985–2018 under the EKC framework. For this purpose, we apply a fully modified ordinary least square (FMOLS) technique. The empirical findings of this study identify that globalization is positively associated with CO₂ emission. The results also indicate that non-renewable energy consumption increasing environmental pollution. Moreover, the results confirm the EKC hypothesis in the South Asian region; this means that at the early stages of development, when economic growth increases, environmental pollution also increases, but environmental degradation starts to decrease with the increases in economic growth after the threshold point. The empirical outcomes suggest that the government should subsidize and promote renewable energy sources to tackle the problem of environmental degradation.