Title: Relationship between industrial development and energy-related industrial CO₂ emissions in Bangladesh: application of ARDL and LMDI models

Authors: Md. Atikur Rahaman; Md. Afzal Hossain; Kanasani Rajesh

Addresses: School of Economics and Management, Jiujiang University, 551 Qianjin Donglu, Jiujiang, Jiangxi, 332005, China ' College of Business Administration, IUBAT – International University of Business Agriculture and Technology, 4 Embankment Drive Road, Sector-10, Uttara Model Town, Dhaka-1230, Bangladesh ' School of Medicine, Jiujiang University, Jiujiang, 332005, China

Abstract: This research investigates the relationship between industrial development and CO₂ emissions stemming from energy consumption in Bangladesh's industrial sector. Employing the ARDL bound test and LMDI decomposition index model, our analysis reveals that energy consumption and industrial development exert long-term positive effects on CO₂ emissions. LMDI decomposition index model shows that industrial economic activity and labour factor are the two key factors driving up CO₂ emissions. But only to the degree that industry energy intensity, emissions, and energy structure variables allow for the minimisation of CO₂ emissions. By elucidating these relationships and proposing actionable strategies, this study contributes to the discourse on responsible industrial development amidst the imperative to combat global warming.

Keywords: industrial development; energy consumption; CO₂ emissions; decompositions; decoupling; ARDL model; Bangladesh.

DOI: 10.1504/IJSE.2025.148991

International Journal of Sustainable Economy, 2025 Vol.17 No.4, pp.345 - 372

Received: 07 Feb 2024
Accepted: 16 Jun 2024
Published online: 07 Oct 2025 *

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