Determinants of environmental degradation: Exploring the unexplored for brunei darussalam
This paper identifies the determinants of environmental degradation for the resource-rich economy of Brunei Darussalam. Annual data for selected variables on the economy of Brunei Darussalam is obtained from the World Development Indicators (WDI) for the period 1990–2020. To explore the potential co...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-01-01
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| Series: | Environmental Challenges |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667010024000258 |
| _version_ | 1797292883219316736 |
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| author | Mehboob Ul Hassan Muhammad Tahir Norulazidah Omar Ali Samra Qamar Waqar Ullah Khan Umar Burki |
| author_facet | Mehboob Ul Hassan Muhammad Tahir Norulazidah Omar Ali Samra Qamar Waqar Ullah Khan Umar Burki |
| author_sort | Mehboob Ul Hassan |
| collection | DOAJ |
| description | This paper identifies the determinants of environmental degradation for the resource-rich economy of Brunei Darussalam. Annual data for selected variables on the economy of Brunei Darussalam is obtained from the World Development Indicators (WDI) for the period 1990–2020. To explore the potential cointegration relationship between environmental degradation and its determinants, we apply autoregressive distributed lagged modeling (ARDL). The long-run findings indicated that an increasing income level and energy consumption had caused environmental degradation in Brunei Darussalam, as their coefficients are positive and statistically significant. On the other hand, trade openness has improved the overall quality of the environment in Brunei Darussalam as its impact on CO2 emissions is negative and statistically significant. Urbanization has a negative but insignificant influence on CO2 emissions. The short-run results showed that trade openness, urbanization, and energy consumption had degraded the quality of the environment. Our causality analysis show that CO2 emissions are unilaterally related to GDP per capita and energy consumption, while energy consumption casts a one-way impact on GDP per capita. Moreover, urbanization is unilaterally causing CO2 emissions, energy consumption, and GDP per capita. Finally, a one-way causal relationship is seen between trade openness and energy consumption. Overall, our results are quite interesting as the long-run and short-run determinants of environmental degradation are not uniform. The study's findings provide practical insights for Brunei Darussalam's policymakers to cope with ecological degradation. |
| first_indexed | 2024-03-07T20:03:58Z |
| format | Article |
| id | doaj.art-4c24b80900db4dd6b6ed52976c68c018 |
| institution | Directory Open Access Journal |
| issn | 2667-0100 |
| language | English |
| last_indexed | 2024-03-07T20:03:58Z |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Environmental Challenges |
| spelling | doaj.art-4c24b80900db4dd6b6ed52976c68c0182024-02-28T05:14:29ZengElsevierEnvironmental Challenges2667-01002024-01-0114100859Determinants of environmental degradation: Exploring the unexplored for brunei darussalamMehboob Ul Hassan0Muhammad Tahir1Norulazidah Omar Ali2Samra Qamar3Waqar Ullah Khan4Umar Burki5Islamic Banking Center, Department of Economics, College of Business Administration, King Saud University, Riyadh P.O. Box 7115, Kingdom of Saudi ArabiaDepartment of Management Sciences, COSMATS University Islamabad, Abbottabad Campus, PakistanUBD School of Business and Economics (UBDSBE), Universiti Brunei Darussalam, BruneiDepartment of Management Sciences, COSMATS University Islamabad, Abbottabad Campus, PakistanDepartment of Management Sciences, COSMATS University Islamabad, Abbottabad Campus, PakistanUSN Business School, University of South-Eastern Norway, Norway; Department of Business Administration, New Oslo University College, Norway; Corresponding author at: USN Business School, University of South-Eastern Norway, Norway.This paper identifies the determinants of environmental degradation for the resource-rich economy of Brunei Darussalam. Annual data for selected variables on the economy of Brunei Darussalam is obtained from the World Development Indicators (WDI) for the period 1990–2020. To explore the potential cointegration relationship between environmental degradation and its determinants, we apply autoregressive distributed lagged modeling (ARDL). The long-run findings indicated that an increasing income level and energy consumption had caused environmental degradation in Brunei Darussalam, as their coefficients are positive and statistically significant. On the other hand, trade openness has improved the overall quality of the environment in Brunei Darussalam as its impact on CO2 emissions is negative and statistically significant. Urbanization has a negative but insignificant influence on CO2 emissions. The short-run results showed that trade openness, urbanization, and energy consumption had degraded the quality of the environment. Our causality analysis show that CO2 emissions are unilaterally related to GDP per capita and energy consumption, while energy consumption casts a one-way impact on GDP per capita. Moreover, urbanization is unilaterally causing CO2 emissions, energy consumption, and GDP per capita. Finally, a one-way causal relationship is seen between trade openness and energy consumption. Overall, our results are quite interesting as the long-run and short-run determinants of environmental degradation are not uniform. The study's findings provide practical insights for Brunei Darussalam's policymakers to cope with ecological degradation.http://www.sciencedirect.com/science/article/pii/S2667010024000258Environmental degradationBrunei darussalamARDLEnergyIncome |
| spellingShingle | Mehboob Ul Hassan Muhammad Tahir Norulazidah Omar Ali Samra Qamar Waqar Ullah Khan Umar Burki Determinants of environmental degradation: Exploring the unexplored for brunei darussalam Environmental Challenges Environmental degradation Brunei darussalam ARDL Energy Income |
| title | Determinants of environmental degradation: Exploring the unexplored for brunei darussalam |
| title_full | Determinants of environmental degradation: Exploring the unexplored for brunei darussalam |
| title_fullStr | Determinants of environmental degradation: Exploring the unexplored for brunei darussalam |
| title_full_unstemmed | Determinants of environmental degradation: Exploring the unexplored for brunei darussalam |
| title_short | Determinants of environmental degradation: Exploring the unexplored for brunei darussalam |
| title_sort | determinants of environmental degradation exploring the unexplored for brunei darussalam |
| topic | Environmental degradation Brunei darussalam ARDL Energy Income |
| url | http://www.sciencedirect.com/science/article/pii/S2667010024000258 |
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