<p>Improving environmental quality through carbon dioxide (CO<sub>2</sub>) emission reduction has emerged as a global priority, taking into account the sustainability of both environmental and economic development. In light of this, the present study investigates the nexus between CO<sub>2</sub> emissions, environmental protection expenditure (EPE), foreign direct investment (FDI), urban population growth, forest area, gross domestic products (GDP) and energy price in Bangladesh. EPE is a crucial way for local authorities to improve environmental quality since it provides financial resources for environmental remediation and promotes effective energy use. The present study employed time series data from 2001 to 2016. This study applied the autoregressive distributed lag (ARDL) bounds test methodology to capture the cointegration among the variables. The research findings revealed that, in the long run, forest area and FDI contribute to a reduction in carbon emissions, confirming a noticeable improvement in environmental quality. Conversely, in the long run, EPE, urban population growth, GDP, and energy prices have a significant positive impact on CO<sub>2</sub> emissions, demonstrating a detrimental influence on environmental quality. In addition, in the short run, EPE, FDI and GDP have a statistically significant impact on environmental pollution. These findings inform a series of policy recommendations tailored to Bangladesh’s specific context, such as attracting environmentally responsible foreign investors, implementing sustainable forest management practices alongside proper urban planning and responsible family planning initiatives to alleviate the environmental strain from urban population growth, and prioritizing the development of renewable energy-based infrastructure, making clean energy a competitive and accessible alternative to fossil fuels. Additionally, EPE requires more accurate and organized distribution to mitigate institutional inefficiencies, poor enforcement, and uneven allocation of resources which may reduce the positive impact of EPE to environmental degradation.</p>

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Environmental protection expenditure to mitigate pollution: an empirical evidence from Bangladesh

  • Tanzin Akhter,
  • Tamanna Siddiqua Ratna,
  • Adnan Chowdhury,
  • Ferdous Ahmed,
  • Waleed Saeed Mohammed Afand,
  • Touitou Mohammed

摘要

Improving environmental quality through carbon dioxide (CO2) emission reduction has emerged as a global priority, taking into account the sustainability of both environmental and economic development. In light of this, the present study investigates the nexus between CO2 emissions, environmental protection expenditure (EPE), foreign direct investment (FDI), urban population growth, forest area, gross domestic products (GDP) and energy price in Bangladesh. EPE is a crucial way for local authorities to improve environmental quality since it provides financial resources for environmental remediation and promotes effective energy use. The present study employed time series data from 2001 to 2016. This study applied the autoregressive distributed lag (ARDL) bounds test methodology to capture the cointegration among the variables. The research findings revealed that, in the long run, forest area and FDI contribute to a reduction in carbon emissions, confirming a noticeable improvement in environmental quality. Conversely, in the long run, EPE, urban population growth, GDP, and energy prices have a significant positive impact on CO2 emissions, demonstrating a detrimental influence on environmental quality. In addition, in the short run, EPE, FDI and GDP have a statistically significant impact on environmental pollution. These findings inform a series of policy recommendations tailored to Bangladesh’s specific context, such as attracting environmentally responsible foreign investors, implementing sustainable forest management practices alongside proper urban planning and responsible family planning initiatives to alleviate the environmental strain from urban population growth, and prioritizing the development of renewable energy-based infrastructure, making clean energy a competitive and accessible alternative to fossil fuels. Additionally, EPE requires more accurate and organized distribution to mitigate institutional inefficiencies, poor enforcement, and uneven allocation of resources which may reduce the positive impact of EPE to environmental degradation.