The relationship between greenhouse gas emissions and economic growth: An empirical evidence in Southeast Asian Countries

Abstract

This study ams to examine the relationship between greenhouse gas emissions and economic growth in 11 Southeast Asian countries over the period from 1990 to 2022. The research employs the Three-Stage Least Squares (3SLS) regression method on two distinct models: an economic growth model and an environment model. The findings reveal a bidirectional relationship between CO2 emissions and GDP. The results of environmental model support indicate that CO2 emissions tend to increase during the early stages of economic growth but decline as the economy reaches a more advances stage of development. Furthermore, the growth model suggests that a reduction in CO2 emissions may have a positive impact on economic growth. This implies that lower emissions could result from policies promoting more efficient energy use and enhancing sustainable development. At the same time, the results show that CO2 emissions in Southeast Asian countries continue to exhibit an upward trend in line with GDP growth.