Economic Growth and Environmental Degradation in ASEAN-10 Countries: An Econometric Descriptive Analysis

Abstract

The linkage between GDP growth and CO2 emissions is studied in this research among the ASEAN-10 countries, as for the gradual economic growth received by the ASEAN economy; we need to analyze the complex and nonlinear relationship between the environmental indicator CO2 and economic growth. In recent decades, ASEAN countries have passed through a period of rapid economic development associated with industrialization, urbanization, and increasing foreign direct investment. But this growth has entailed a heavy environmental cost — soaring carbon emissions, deforestation, and pollution. By using econometric methods, such as Granger causality and Johansen cointegration tests, this study investigates the short-term and long-term relationship between Economic Growth and Environmental Degradation across ASEAN 10 countries from 1990 to 2023.The results show notable country-specific economic-environmental relationships. Countries such as Cambodia and the Philippines, on the other hand, demonstrate this strong causality where GDP growth causes emissions to increase, which implies the presence of energy-intensive industries and weak regulatory frameworks. In contrast, we see severe growth in countries such as Singapore, which has invested in renewable energy and tough environmental policies. The study reflects the importance of renewable energy, technology innovation, and regional cooperation in sustainable development. Besides advocating for green growth strategy across ASEAN, the analysis makes it evident that the need for the involvements of customized policies are required to address the distinctive national challenges. These recommendations include expanding the adoption of renewable energy technologies, implementing more stringent environmental regulations, and encouraging global collaboration.