Inderscience Publishers

Some determinants of carbon dioxide emissions in Bangladesh

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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

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