Do Electricity Consumption and Economic Growth Lead to Environmental Pollution? Empirical Evidence from Association of Southeast Asian Nations Countries
Nowadays, environmental pollution has become a global problem and common to both developed and developing countries. The purpose of this study is to analyze the environmental pollution during the period from 1990 to 2014 in order to discuss the most important factors can effect environmental quality in a specific region in Asia. Using a panel data, in particular generalized least squares model for the sample with T large, N small examined by Pesaran (2006), Sickles and Horrace (2014), our results that a less developed country has a lower level of environmental pollution than a more developed country. More specifically, countries such as Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam have a positive and significant effect on environmental degradation, but no effect for Myanmar. In regard to environmental quality across year, environmental pollution has become even more urgent over time. Specifically, a negative and significant effect can be found in the period from 2005 to 2014 but insignificant effect in the period from 1991 to 2004, and the magnitude of effect has increasingly increased. Further, electricity consumption and income have a positive and significant effect on environmental pollution. However, although export performance has a negative effect on environmental pollution but this effect was insignificant.
Keywords: Environmental Pollution, Electricity Consumption, Income, Generalized Least Squares
JEL Classifications: E21, Q52, Q54