Do Natural Resources and Human Capital Contribute to Environmental Degradation? Evidence from the Central Asian States

2021

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DOI 10.1109/dasa53625.2021.9682376
Data confidence 70 medium
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Abstract

The study investigated the nexus between natural resources, human capital, expansion of the economy, and CO2 emissions in Central Asia using the Pooled Mean Group (PMG) and the Dumitrescu and Hurlin (DH) causality tests from 1995–2017. It found that human capital is significant and inversely related to CO2 both in the long and short run. It was found that 1% growth in natural resources and expansion of the economy will substantially raise emissions in Central Asia by 0.02% and 1.3%. Economic expansion and human capital have one-way causality to CO2 emissions, However, the index of the natural resources is found to have a neutral causal association with CO2. At the end of the study, significant policy implications are revealed.