INTRODUCTION
In the present era, the two chief concerns are global warming and international climate
change. The greenhouse effect particularly increases the carbon dioxide (CO2) content. It has
dramatically worsened the ecological condition of the world and worsened the globe (Rinkesh,
2017). Especially in the last three decades, these growing environmental problems have attracted
the attention of scientists and policymakers to study the effects of these environmental problems on
the world economy. They have devised ways to minimize greenhouse gas and global warming
(GHG) discharges. It has been a central theme of international and national environmental policy
agendas. For this purpose, greenhouse gas emissions have been estimated worldwide (Shahbaz et
al., 2016).
Earlier in history, manufacturing countries held environmental agendas and agreements; it
was named the (UNFCC). Its primary aim was to control and bring a reduction in GHG emissions.
"UNFCCC was properly approved in 1992 and signed by all the stakeholders at the UN Meeting in
Rio de Janeiro on Growth and Environment. It is considered one of the most popular environmental
conferences. It is designed to prevent carbon dioxide emissions so that all economies can control
the effects of high-temperature concentrations on global climate change. Following this
development, another international agreement was ratified by the UNFCCC (Kyoto Protocol signed
on December 11.1997) into force. February (16, 2005). The contract aims to decrease greenhouse
gas emissions in 37 industrial countries and European societies. The Kyoto Protocol states:
"Developed countries have pledged to reduce greenhouse gas emissions by five per cent (5%) from
1990 to 2012".
Addressing environmental issues has been getting much consideration and attention at the
global level because of the recent drastic environmental change. Notably, the arrangement of the
Paris Treaty through the “UNFCCC” marked the beginning of an essential phase. It was held on 4th
November 2016 and approved by 147 countries. This agreement was set to decrease GGHG
emissions and maintain global temperature.2 degree Celsius (UN, 2015). Environmental changes
are linked to greenhouse gases, which is not only an issue for developed countries. It was also
specified by the World Bank in 2011. Developing countries such as India and China received 62%
(34%) of world carbon emissions discharge. Low CO2 consumption because of excessive use of
low fossil fuels hurts (GDP) growth, which is a central issue facing all nations, particularly low
carbon efficiency (Fan et al., 2017). It is even more detrimental to global warming and climate
change. However, energy is vital for running a business and for community, economic and
environmental development throughout the economy. Growing processes and transporting or using
mainstream goods without energy is challenging.
Therefore, insufficient energy reduces efficiency and productivity in many sectors of the country,
such as transportation and other areas of social life (Yildirim, 2017). All these changes result in a
severe negative impact on the world environment, which people have realized would dangerously
affect humans (Jitpakdee & Thapa, 2012; Ekpoh & Bassey, 2016). As stated by Cooper and Michie
(2015), there has been an increase in the emission of CO2 and other GHGs into the atmosphere,
which is growing with time. Thus, the need and quest for economic growth have caused
environmental degradation on a larger scale. It can be attributed to industrial improvement and
growth in emerging and developed nations. The economic development of any economy is heavily
based on different factors; these factors have injurious effects on the atmosphere. These adverse
effects are mainly caused by exploiting environmental pollution, unstable resources, and
environmental changes. Phimphanthavong (2013) reported that rapid economic growth and
urbanization in many world economies have led to increased energy consumption (Ullah et al.,
2023). Therefore, the key issue facing many nations is the significant increase in CO2 emissions
caused by the growth of energy use and GDP. The findings of Kasman and Duman's (2015) study
mentioned that a large part of the energy is contributed by fossil fuels- including natural oil, gas and
coal. This has resulted in a considerable rise in CO2 emissions. The CO2 emissions are hidden and
may take years to resolve (Bushell et al., 2017). According to Sohag et al. (2017), an increase in age
in trade could reduce carbon emissions by 0.3%. In addition, introducing global trade has led to a
rise in carbon emissions in developing countries. It has received mixed reactions from developed
countries. (Apergis et al., 2010; Shahbaz et al., 2016).
With the turn of this century, steady growth has been studied in the worldwide
economies and energy use. As a result, more energy is used than fossil fuels, which increases the
ratio through regular fog. GHS emissions are spreading at an incredible speed that negatively
affects the environment. The issues concerning energy have directly affected GDP growth and
societal growth. The recorded number of (35.6 BMT IN 2020) is anticipated to reach (43.2 BMT in
2040) which could warm the world globally. Compared to the last forty years, the world economy
has more than tripled. Despite rising GDP growth, emissions levels in most countries still worked to
reduce general resources and increase GHG emissions. Some figures suggest that by 2050, resource
scarcity will become a significant challenge for the world because of rapid population and GDP
growth, which will slow down the pace of economic growth, especially in poor areas (Association
for Financial Co-Operations and Development, 2012) (Zahonogo, 2016). By 2018, total carbon-
related emissions are up 1.7 per cent, reaching 33.1 per cent of gaga tons of carbon dioxide
emissions. Since 2013, it has been at the best level of development, 70% above the standard
development rate since 2010. More recently, the growth of 560 Mt has compared to the total output
of an international aircraft. The increase in gas emissions is because of the strong global economy
and high energy consumption because of climate change in some parts of the world, increasing the
demand for heating and cooling (IEA, 2019).
As a recent global phenomenon, the link between CO2 emissions and gross domestic product
(GDP) energy consumption has drawn the attention of economists and environmentalists. Energy
consumption ends up being a growing function of CO2 emissions. There is a strong link between
gross domestic product, trade openness, energy use, and carbon dioxide emissions (CO2). The
organization has important proposals for economic, trade and environmental policies. To date, in
the view of many scholars, the nexus among power growth, the commercial environment, and the
growth environment in the various texts is a problem left out. Economic growth in South Asian
countries (Pakistan, India, Sri Lanka and Bangladesh) is not creating unnecessary pollution. Also,
trade-offs for economic development (GDP) require strategic policies to avoid natural economic
costs. Later, the concept of power use and trade openness policies played a significant role in
environmental deprivation.
RESEARCH HYPOTHESIS
i. H1: There is no significant impact of energy use on environment degradation in South Asian
countries.
ii. H2: There is no significant impact of economic growth on environmental degradation in
South Asian countries.
OBJECTIVES
The study at hand is set with the following stated objectives:
i. To examine the impact of energy consumption on environmental degradation in South Asian
countries.
ii. To suggest policy prescription based on findings of the study.
