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<p>Air pollution poses a serious challenge to public health and sustainable development, with its dynamics closely linked to economic growth. This study investigates the comprehensive analysis of air quality and key economic growth factors across six South Asian developing economies. Employing Feasible Generalized Least Squares (FGLS) estimation, the empirical test also investigates the Environmental Kuznets Curve (EKC) hypothesis across the chosen variables. Results indicate that foreign direct investment (FDI) has a positive impact on air quality through the adoption of cleaner technologies, while trade openness aligns with the pollution haven hypothesis. Testing the Environmental Kuznets Curve (EKC) hypothesis, economic growth is found to increase carbon emissions, with evidence of an inverted U-shaped relationship between GDP growth and PM2.5 concentrations. In contrast, SO<sub>2</sub> emissions exhibit U-shaped patterns with fossil fuel consumption, while NOx exposure and SO<sub>2</sub> emissions show strong positive associations with government expenditure and urbanization. These findings underscore the need for targeted policies to regulate urban expansion and trade liberalization, while promoting FDI and renewable energy adoption to balance growth with environmental sustainability.</p>

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Air quality and growth nexus: evidence from South Asian economies

  • 期刊论文

  • 发表日期：

    2026年5月28日

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  • Shovon Roy,
  • Jannat Sharmin Moon,
  • Shanta Islam Dipa,
  • Muhammad Shahadat Hossain Siddiquee

摘要

Air pollution poses a serious challenge to public health and sustainable development, with its dynamics closely linked to economic growth. This study investigates the comprehensive analysis of air quality and key economic growth factors across six South Asian developing economies. Employing Feasible Generalized Least Squares (FGLS) estimation, the empirical test also investigates the Environmental Kuznets Curve (EKC) hypothesis across the chosen variables. Results indicate that foreign direct investment (FDI) has a positive impact on air quality through the adoption of cleaner technologies, while trade openness aligns with the pollution haven hypothesis. Testing the Environmental Kuznets Curve (EKC) hypothesis, economic growth is found to increase carbon emissions, with evidence of an inverted U-shaped relationship between GDP growth and PM2.5 concentrations. In contrast, SO2 emissions exhibit U-shaped patterns with fossil fuel consumption, while NOx exposure and SO2 emissions show strong positive associations with government expenditure and urbanization. These findings underscore the need for targeted policies to regulate urban expansion and trade liberalization, while promoting FDI and renewable energy adoption to balance growth with environmental sustainability.