Determinants of CO2 Emissions Growth in South Asia: An Analysis of Seven Key Factors

This study examines the influence of seven key variables (economic growth, urbanization, population, energy consumption, fossil fuel use, agricultural production, and forest area) on CO2 emissions in five South Asian countries (India, Pakistan, Bangladesh, Nepal, and Sri Lanka) from 1990 to 2014. Data on CO2 emissions are sourced from both World Development Indicators (WDI) and the Global Carbon Bud- get (GCB).Using fixed effects and random effects models, along with Arellano-White heteroskedasticity- robust standard errors, we conducted regression analysis. The analysis using WDI data reveals that GDP growth, urbanization, energy consumption, and fossil fuel usage contribute positively to CO2 emissions, while forest area and agricultural production have a negative impact.Conversely, analysis using GCB data indicates that urbanization, population growth, and fossil fuel use are positively corre- lated with CO2 emissions, while only forest area shows a negative correlation. The noteworthy impact of urbanization, forest area, and fossil fuel use on CO2 emissions is consistent across both regression models. However, a more detailed investigation with granular data is suggested to better understand the relationships between population growth and agricultural production and CO2 emissions in the region.