Title: Some determinants of carbon dioxide emissions in Bangladesh

Authors: Prashanta Kumar Banerjee; Matiur Rahman

Addresses: Bangladesh Institute of Bank Management, Dhaka, Bangladesh. ' Department of Accounting and Finance, McNeese State University, Lake Charles, LA 70609, USA

Abstract: Carbon dioxide (CO₂) emissions, industrial output growth, population growth and Foreign Direct Investment (FDI) inflows in Bangladesh for 1972-2008 are found non-stationary in terms of both Augmented Dickey-Fuller (ADF) and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests with different orders of integration. As a result, the Autoregressive Distributed Lag (ARDL) model and Vector Error-Correction Model (VECM) are estimated. There is evidence of a co-integrating (converging long-run equilibrium) relationship between the variables of long-run causal flows from industrial output growth, population growth and FDI to CO₂ emissions. FDI seems to marginally mitigate CO₂ emissions. Furthermore, short-run interactive net positive feedback effects among the variables can be observed.

Keywords: environmental impact; air pollution; carbon dioxide; CO2; carbon emissions; FDI; foreign direct investment; population growth; industrial output; co-integration; causality; short run; long run; feedback effects; Bangladesh; greenhouse gases; GHG emissions.

DOI: 10.1504/IJGE.2012.050345

International Journal of Green Economics, 2012 Vol.6 No.2, pp.205 - 215

Published online: 12 Dec 2014 *

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