A deep dive on the relationship between economic growth and air pollution in the SAARC and ASEAN trade-blocs

Abstract

The study intends to review the association between economic growth and environmental degradation for the two regional trading blocs - SAARC and ASEAN, during 1997-2019, and employs a panel regression method for analysis. The study reveals that the rates of growth of GDP significantly contributed to air pollution, although several treaties have been signed and commitments are made by the member countries in both the trading blocs for ensuring pollution-free environment. The Environmental Kuznets Curve were found N-shaped and opposite to the N-shaped for the SAARC and ASEAN nations, respectively, indicating better performances of the ASEAN nations in the later phase as compared to the SAARC nations, towards an environmental-friendly growth. However, air pollution level on an average was found higher in the ASEAN trading bloc compared to the SAARC, during 1997-2019. Hence, adaptation of stringent policies against the global climate change is pivotal in present times to save the world from future damages.