Economic Expansion, Energy Choices and Carbon Dioxide Emissions: A Panel Study of South Asia

Neha Thakur; Sanjeet Singh

doi:10.2478/ers-2026-0013

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Economic Expansion, Energy Choices and Carbon Dioxide Emissions: A Panel Study of South Asia

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

Volume 19 (2026): Issue 2 (June 2026)

By: Neha Thakur and Sanjeet Singh

Open Access

|Jul 2026

Abstract

Subject and purpose of work

This research explores how renewable energy consumption (LREC), economic growth (LGDP), industrialization (LIND), foreign direct investment (LFDI), and population growth (LPOP) influence carbon dioxide emissions (LCO2) in South Asia.

Materials and methods

This study utilizes World Bank data spanning 1990 to 2020 and employs cross-sectional dependence tests, slope homogeneity tests, panel stationarity tests, cointegration tests, the CS-ARDL model, and causality analysis.

Results

The empirical results show that LFDI and LIND significantly increased emissions, while LGDP and LPOP had no significant impact on carbon emissions. Conversely, LREC effectively reduces emissions in both the immediate and extended periods. The causality test findings indicate that LGDP and LCO₂, LREC and LCO₂, and IND and LCO₂ influence each other in a reciprocal manner.

Conclusions

Findings bring to light the necessity of transitioning from polluting power sources toward cleaner renewable energy, redirect foreign investment toward green sectors, and promote cleaner industrial production.

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Articles in this issue

DOI: https://doi.org/10.2478/ers-2026-0013 | Journal eISSN: 2451-182X | Journal ISSN: 2083-3725

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Language: English

Page range: 219 - 239

Published on: Jul 31, 2026

Published by: John Paul II University in Biała Podlaska

In partnership with: Paradigm Publishing Services

Keywords:

carbon dioxide emissions,

foreign direct investment,

industrialization,

renewable energy consumption,

CS-ARDL,

South Asia

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Business and economics,

Business management,

Business management, other,

Local government and administration

© 2026 Neha Thakur, Sanjeet Singh, published by John Paul II University in Biała Podlaska
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 19 (2026): Issue 2 (June 2026)