The Role of Urbanization and Trade in Driving Carbon Emissions in Asia

Abstract

The increasing pace of greenhouse gas emissions, which is causing previously unheard-of levels of global warming, is currently the biggest threat to the environment. In addition to accelerating climate change, this rise in emissions causes serious ecological disturbances such as rising sea levels, intense weather, and biodiversity loss. Addressing this issue is critical to preserving environmental stability and ensuring sustainable living conditions for future generations. This study primarily aims to explore the relationship between urbanization, energy consumption, and carbon dioxide emissions in Asian countries. The dependent variable is carbon dioxide emissions, while the independent variables are trade, GDP per capita growth, the square of GDP per capita growth, urban population, population density, and the use of renewable and non-renewable energy. By analyzing these factors, the study seeks to uncover how urbanization and energy use, alongside economic and trade growth, contribute to environmental impacts in the region. The study's findings demonstrate that, although having a positive correlation with carbon dioxide emissions, non-renewable energy use has no statistically meaningful effect. This suggests that although emissions are influenced by non-renewable energy sources, other variables could be more important in determining emissions levels. However, carbon emissions are strongly correlated with GDP per capita growth, urban population size, population density, and trade activity, indicating that the environmental effect increases with these characteristics, especially in quickly urbanizing countries. These findings underline the challenges that come with urban growth and economic expansion, where increased energy demands, transportation needs, and industrial activity tend to elevate emissions. The study suggests that governments should prioritize energy conservation strategies. This could involve investing in renewable energy infrastructure, supporting the shift from fossil fuels to clean energy sources, and creating incentives for industries to adopt green technologies. Additionally, promoting public transportation over private vehicle use could substantially mitigate emissions by reducing traffic congestion, lowering fuel consumption, and decreasing the overall carbon footprint of urban areas. By focusing on these approaches, governments could support sustainable urban growth while balancing economic and environmental goals.