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Decoupling and decomposition analysis of environmental impact from economic growth: a comparative analysis of Pakistan, India, and China

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Abstract

The dispute between economic growth and greenhouse gas emissions is one of the major challenges of the twenty-first century. The central issue of the emerging economies revolves around the decoupling of economic growth and the rising carbon dioxide (CO2) emissions. This study examines the decoupling the CO2 emissions from the economic growth through the employment of the Tapio decoupling index and decomposition of CO2 emissions into its pre-determined factors through the Log Mean Divisia Index (LMDI) decomposition technique for Pakistan, India, and China (PIC) for a time span of 1990–2014. The findings of the Tapio elasticity analysis depict that in a few years, environmental impact has been seen to be decoupled from the economic growth in the respective PIC countries. However, relatively Pakistan experienced expensive negative decoupling; India mostly experienced weak decoupling and expensive coupling, while China exhibited weak decoupling in multiple years. In addition, the analysis of Tapio decoupling elasticity showed that energy intensity is the key factor supporting the decoupling in PIC countries, while population, affluence (GDP per capita) and energy structure have weakened the progress of decoupling. Furthermore, the analysis of the LMDI decomposition suggested that population, energy structure and affluence in PIC countries increase the CO2 emissions, while energy intensity reduces CO2 emissions, while mixed effects are reflected by carbon intensity.

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Source: International Panel on Climate Change (IPCC 2014)

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Source of Data: World Bank, (2019)

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Authors and Affiliations

  1. Faculty of Economics and Administrative Sciences, Cag University, Mersin, Turkey

    Ilhan Ozturk

  2. Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan

    Ilhan Ozturk

  3. Department of Finance, Asia University, 500, Lioufeng Rd., Wufeng, Taichung, 41354, Taiwan

    Ilhan Ozturk

  4. Department of Economics, Quaid-I Azam University, Islamabad, Pakistan

    Muhammad Tariq Majeed

  5. School of Economics, Quaid-I Azam University, Islamabad, Pakistan

    Sher Khan

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  1. Ilhan Ozturk
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Correspondence to Ilhan Ozturk.

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Ozturk, I., Majeed, M.T. & Khan, S. Decoupling and decomposition analysis of environmental impact from economic growth: a comparative analysis of Pakistan, India, and China. Environ Ecol Stat 28, 793–820 (2021). https://doi.org/10.1007/s10651-021-00495-3

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