Economic Determinants of Carbon Dioxide Emissions: A Proof of the Environmental Kuznet Curve Hypothesis in Asia

Abstract

The study aims to analyze the economic determinants of carbon dioxide emissions in East and Southeast Asian countries and intend to prove whether the Environmental Kuznets Curve (EKC) applies both in East and Southeast Asia. The data used are secondary data from 1993-2015 which includes several countries in Southeast Asia that are included in the lower-middle-income category and several countries in East Asia that are classified as high income.  The methods used include Generalized Least Squares (GLS) and Ordinary Least Squares (OLS). The results found that Foreign Direct Investment (FDI) and Economic Openness (OPEN) significantly influence carbon dioxide emissions in both East and Southeast Asia. The hypothesis of the Environmental Kuznets Curve (EKC) is proven to apply both East Asian and Southeast Asian countries, although it has not reached the turning point yet.