Natural resources and CO2 emissions nexus: Sustainable development path for South Asian countries
The rapid deterioration of environment has attracted the world’s attention to find the determinants of CO2 emissions. In this line, many studies have in probed the factors affecting CO2 emissions but the role of natural resources has been overlooked significantly. Therefore, this study attempts to fill this gap by investigating the role of natural resources towards CO2 emissions in four South Asian countries over the annual period of 1990-2019. Other variables of trade openness, renewable energy, energy use and GDP were also included in the model. Findings of ARDL method reveal that natural resources reduce CO2 emissions in Pakistan and India. Abundance of natural resources increases CO2 emissions in Bangladesh. This association was not found significant in Sri Lanka. Moreover, this research confirmed EKC in Pakistan, India, Bangladesh and Sri Lanka. Renewable energy is reducing CO2 emissions in these countries. Therefore, natural resources are important to reduce CO2 emissions in Pakistan and India. Bangladesh needs to utilize its natural resources efficiently in order to improve air quality.