Dynamic linkage among industrialisation, urbanisation, and CO₂ emissions in APEC realms: Evidence based on DSUR estimation

This empirical study is a new addition to the existing body of knowledge, which estimates the influence of industrialisation and urbanisation on carbon dioxide emissions in the APEC countries with a new panel estimation technique, the Dynamic Unrelated Seemingly Regression (DSUR). The data covering the years 1990 to 2014 have been used for analysis. Empirical findings of the current study reveal that industrialisation degrades the environment through releasing carbon dioxide to the air. Beside this, it is also observed that the energy intensity, urbanisation, and economic growth enhance the level of environmental pollution via CO₂ emissions. Moreover, unidirectional causality is found between industrialisation and CO₂ emission. For dynamic analysis, a time series analysis is also performed. Finally, policy recommendations regarding R & D are suggested for the industrial and energy sectors.