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Economic Integration and Environmental Pollution Nexus in Asean: A PMG Approach

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Beyond Traditional Probabilistic Methods in Economics (ECONVN 2019)

Part of the book series: Studies in Computational Intelligence ((SCI,volume 809))

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Abstract

The nexus between economic integration and environmental pollution has been intensively analyzed by a number of studies, but the empirical evidence more often than not remains controversial and ambiguous. This research applies the estimation technique Pooled Mean Group (PMG) introduced by Pesaran et al. (1999) and the cointegration test of Fisher-Johansen to examine the impacts of economic integration on environmental quality (measured by the CO\(_2\) emissions per capita) in Asean 8 countries during the 1986–2014 period. The empirical results provide a strong statistical evidence that economic integration increases environmental pollution in Asean countries, yet there exists an inverted U-shape of ecological Kuznets curve. The time required to return to equilibrium is 4 years, and the turning point’s GDP per capita is about 9,400 US Dollar/year (at constant 2010 prices). This research suggests that policy-makers should control the environmental standards in the projects to improve environmental pollution, to achieve sustainable economic development in the long-run.

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Authors and Affiliations

  1. University of Labour and Social Affairs, Hanoi Campus, Hanoi City, Vietnam

    Pham Ngoc Thanh, Nguyen Duy Phuong & Bui Hoang Ngoc

  2. University of Labour and Social Affairs, Ho Chi Minh Campus, Ho Chi Minh City, Vietnam

    Bui Hoang Ngoc

  3. Graduate School - Ho Chi Minh City Open University, Ho Chi Minh City, Vietnam

    Bui Hoang Ngoc

Authors
  1. Pham Ngoc Thanh
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  2. Nguyen Duy Phuong
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  3. Bui Hoang Ngoc
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Corresponding author

Correspondence to Nguyen Duy Phuong .

Editor information

Editors and Affiliations

  1. Department of Computer Science, University of Texas at El Paso, El Paso, TX, USA

    Vladik Kreinovich

  2. Banking University HCMC, Ho Chi Minh City, Vietnam

    Nguyen Ngoc Thach

  3. Banking University HCMC, Ho Chi Minh City, Vietnam

    Nguyen Duc Trung

  4. TTC Group, Ho Chi Minh City, Vietnam

    Dang Van Thanh

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Thanh, P.N., Phuong, N.D., Ngoc, B.H. (2019). Economic Integration and Environmental Pollution Nexus in Asean: A PMG Approach. In: Kreinovich, V., Thach, N., Trung, N., Van Thanh, D. (eds) Beyond Traditional Probabilistic Methods in Economics. ECONVN 2019. Studies in Computational Intelligence, vol 809. Springer, Cham. https://doi.org/10.1007/978-3-030-04200-4_31

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