Towards a greener future: examining carbon emission dynamics in Asia amid gross domestic product, energy consumption, and trade openness.

ABSTRACT

The purpose of this study is to examine the impact of gross domestic product, energy consumption, and trade openness on carbon emission in Asia. Among the 48 countries in Asia, 42 were included in the analysis, spanning a period of 20 years. Given that Asia is the predominant contributor, accounting for 53% of global emissions as of 2019, a comprehensive examination at both continental and individual country levels becomes imperative. Such an approach aligns with local, regional, and global development agendas, contributing directly and indirectly to climate change mitigation. The analytical techniques employed in this study encompassed panel regression and multiple linear regression, illuminating the specific contributions of each country to the study variables and their impact on carbon emissions. The findings suggest that gross domestic product (13 out of 42 countries), energy consumption (21 out of 42 countries), and trade openness (eight out of 42 countries) have a highly significant impact (p < 0.01) on carbon emissions in Asia. Energy consumption plays a vital role in increasing carbon emissions in Asia, driven by rising populations, urbanisation, and oil and gas production. Policymakers can take several actions such as adopting a carbon pricing system, using sustainable transportation, renewable energy development, and international cooperation within Asia to reach the goal of being carbon neutral by 2050.