Prior studies on environmental standards have highlighted the significance of urbanization and transportation in affecting environmental sustainability worldwide. As the empirical and theoretical debates are still unresolved and divisive, the argument of whether urbanization, transportation and economic growth in Association of Southeast Asian Nations (ASEAN) countries cause greenhouse gas (GHG) emissions remains unclear. This study aim is to examine dynamic linkage between transportation, urbanization, economic growth and GHG emissions, as well as the impact of environmental regulations on GHG emission reduction in ASEAN countries over the years 1995-2018. On methodological aspects, the study accompanies a few environmental studies that check the cross-sectional dependence and slope heterogeneity issues. Moreover, the new cross-sectionally augmented autoregressive distributed lags (CS-ARDL) methodology is also applied in the study to estimate the short-run and long-run effects of the factors on GHG emissions. Substantial evidence is provided that GHG emissions increase with transportation, urbanization and economic growth but decrease with the imposition of environmental-related taxations. Augmented mean group (AMG) and common correlated effect mean group (CCEMG) also support the findings of CS-ARDL estimates. Finally, the study calls for drastic actions in ASEAN countries to reduce GHG emissions, including environmentally friendly transportation services and environmental regulation taxes. This study also provides the guidelines to the regulators while developing policies related to control the GHG emission in the country.
There is a shred of evidence of environmental degradation in the form of carbon emissions to behave differently when tested with different macroeconomic variables. This paper aims to examine the long-run and short-run association between natural resource rent, financial development, and urbanization on carbon emission from the context of the USA during 1995-2015 with the help of a contemporary and innovative approach named quantile autoregressive distributed lagged model (QARDL). The stated approach is applied due to the fact that non-linearity is observed for the study variables. The findings indicated that the higher financial development (0.304), natural resource rent (0.102), and urbanization (0.489) have a positive impact on the environmental degradation in the region of USA during long-run estimation in the stated quantiles of the study. This would indicate that higher financial development, urbanization, and natural resources are putting more environmental pressure on the economy of the USA. Similarly, the findings under short-run estimation confirm that past and lagged values of carbon emission, financial development, natural resource rent, and urbanization are significantly determining the current values of the carbon emission. For this reason, it is suggested that the government requires some immediate steps of the USA to control the harmful effect of such financial development, more urbanization, and higher natural resource rent as well. This would indicate the reflection of some green strategies in all three explanatory variables to generate some fruitful environmental outcomes.