THE IMPACT OF ECONOMIC GROWTH, GLOBALIZATION, AND FINANCIAL DEVELOPMENT ON CO2 EMISSIONS IN ASEAN COUNTRIES

Abstract

The purpose of the paper is to investigate the impact of economic growth (EG), globalization (GL), and financial development (FD) on CO2 emissions in ASEAN countries. For the purpose of analysis, the data were collected form “World Development Indicator (WDI), KOF Swiss economic institute and World Bank” from 2004 to 2018. The panel “fixed effect model” has been used to run the regression analysis with “Discroll-Kraay Standard Error” to control the heteroscedasticity and serial correlation effects on the results. The findings discovered that EG, GL, and FD have positive relation with CO2 emissions in the ASEAN countries. This study recommended to the officials that they should develop policies regarding to control the CO2 emissions. Due to EG, GL, and FD, the energy consumption increases that need to develop the policies regarding efficient use of energy resources that it will not become the cause of CO2 emissions in the country.