What Drives the Environmental Performance? Evidence from Asian Countries

摘要

The environmental performance concern exists globally in spite of various efforts at state levels. This study is an effort to identify the key factors for environmental performance in 34-Asian countries using data period of 2006-2017. The most updated panel study techniques are employed. The existence of cross-sectional dependence (CD) is confirmed by CD tests. The results of the second-generation panel unit root test lead to apply the Westerlund panel cointegration test, which confirms the long-run co integration in the panel countries. Augmented Granger Causality test with error correction term is applied for long-run association. A bi-directional causality between EPI and GDP while uni-directional causality between EPI and forest area is founded. A feedback hypothesis between environmental performance and renewable energy while conservation hypothesis between EPI and food production index holds. The results of FMOLS show that renewable energy and forest area improve while food production index and fertilizer use reduce the environmental performance significantly in Asian countries. The introduction of eco-innovations in production technologies, eco-friendly methods in agriculture sector and forest area enhancement is suggested for improving environmental performance in the region.