“Impact of Economic Growth on Environmental Pollution of Bangladesh By Using Environmental Kuznets Curve (EKC) Hypothesis: Evidence from Bangladesh”
Table of Content:
Serial No. Contents Name Page No.
01 Abstract 01
02 Keyword 01
03 Introduction 02
04 Question 02
05 Data 03
06 Literature Review 03
07 Methodology 04
08 Hypothesis 05
09 Conclusion 05
10 References 06
Bangladesh is a developing country. It is being developed by developing it’s various business sectors. There are many industrial sectors in Bangladesh such as garments sector,leather sector,jute sector,pharmaceutical sector etc. Bangladesh is very famous for garments sector basically. USA,European Eunion,Asia imports garments cloths from Bangladesh. Leather sector is rising sector in Bangladesh. Among total exports, garments sectors covers 81.71% (including wooven garments ; Knitwear) and leather sector covers only 3.62% (leather,leather goods ; footwear). And 14.67% exports come from various industrial sectors such as jute,mining,polyethelyne,fisheries,electronics etc. So for all these sectors we need the advanced technology and advanced technology needs energy which creats a lot carbon di oxide emission as well as sulphur di oxide emission. This carbon di oxide emission is being increased day by day. So the government as well as all the owners of the factories should be more careful about environmental issue. This paper will try to find that whether the owners and government are concious about environmental issue or not. Basically this paper will try to find out the shape of the environmental kuznets curve whether it is inverted U shaped or inverted N shaped or something else in the case of Bangladesh.
Carbon di oxide emission
GDP of Bangladesh
Environmental Kuznets Curve (EKC) Hypothesis
In Bangladesh, in the tannary industries, a lot of chemicals is being used here which is very hazardous for the environment. Such as sodium sulphide, calcium carbonate, sulphuric acid, chromium sulphate, ammoinium sulphate, nitric acid etc. Among all these chemicals chromium sulphate is highly hazardous for air pollution. In the garments industry there also used a lot of dying chemicals for coloring the cloths. So in almost industries of different sectors, a lot of chemicals are being used still which increases carbon di oxide emissions and sulphur di oxide emissions in the increasing rate. This paper will work on specially carbon di oxide emissions. That means how the economic growth is affecting the carbon di oxide emissions, this paper will find out it regarding to Bangladesh.
Now, if we go through the export-import quantity then we can see that Bangladesh is gradually increasing the export and import quantity. On the other hand, FDI is being increased day by day in Bangladesh. So there is a free openness trade between Bangladesh and other countries. Thus, because of more FDI ; more export-import there increases more carbon di oxide emissions as well. So this paper will discuss about it as well.
Is there any Environmental Kuznets Curve in Bangladesh?
If there is EKC in Bangladesh then what is the shape of Environmental Kuznets Curve in Bangladesh; inverted U shaped or inverted N shaped regarding to carbon
di oxide emissions?
To complete this research this paper requires data of Bangladesh’s GDP and carbon di oxide emissions data. So GDP of Bangladesh has been found from World Bank website & central Bank of Bangladesh website and other carbon di oxide emissions data are being searched in some sources. Here, data is secondary data and all data should be panel data. After getting the data, the regression model will be drawn with some more control variables.
This research paper actually focus on impact of economic growth on environmental pollution in Bangladesh. So according to this, the author of this paper read a lot of research papers. Many researchers have worked on the environmental issues. Specially a lot of economists already worked on Environmental Kuznets Curve. In 1993, Grossman & Krueger worked on EKC at first. They worked on 42 countries. Then Holtz-Eakin, Selden & Stern worked on EKC and they firstly worked on carbon di oxide emissions. After that Hilton & Levinson worked on EKC with 48 countries and they found that the shape of EKC curve depends on the functional form,time period & technique effects. Moreover, Kaufmann,List & Gallet worked on sulphur di oxide for EKC curve for the first time. So after reading all these this paper is going to work on EKC with carbon di oxide emissions as an indicator.
On the contrary, there is an article named “New evidence of environmental efficiency on the export performance” written by Tomoyuki Sakamoto, Shunsuke Managi which
is related to the relationship between environment and export performance. In this article, the author tried to find that whether there is any impact of export performance on environmental efficiency. Here, the author used the Ricardian Trade Model. There is one more article named “Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance” written by Leonidas C. Leonidou, Thomas A. Fotiadis, Paul Christodoulides, Stavroula Spyropoulou, Constantine S. Katsikeas which focused on effect of green export business strategy on the export competitive advantage & performance. There is a very important article named “Economic growth and environmental pollution in West Africa: Testing the Environmental Kuznets Curve hypothesis” written by Derick Taylor Adu, Elisha Kwaku Denkyirah which focused to find whether economic growth affects the environmental stability or not. This research paper also focused on this method.
One more paper there is named “Air pollution by fine particulate matter in Bangladesh” written by Bilkis A. Begum, Philip K. Hopke, Andreas Markwitz which has focused on the environmental pollution measurements specially measurements of Particulate matter, black carbon etc of Dhaka city. So from here this paper can get the environmental pollution data and can compare export performance with environmental pollution year by year.
To make this research successful we need to use some data about export, import, environmental pollution amount(specially carbon di oxide emissions) and GDP of Bangladesh. Then the author will make a model and then will regress the model. There are some control variables as well and these variables will also be regressed here. The author will think about the fixed effect as well. To regress the model, the
author will use R-studio to complete it.
Here, export,FDI,GDP of Bangladesh are the independent variable & environmental pollution(carbon di oxide emissions) is the dependent variable. Thus, after making regression model we will regress the model and will check the beta to check how much environmental pollution(carbon di oxide emissions) is being changed due to the change of export,FDI & GDP.
Here, independent variables are export, FDI & GDP and dependent variables is only environmental pollution(carbon di oxide emissions). So hypothesis should be here as following:
H0:(a)?1=0, ?2=0, ?3=0(b)?1>0, ?2<0, ?3>0 N-shaped curve (c)?1<0, ?2>0, ?3<0 inverted N-shaped curve(d)?1>0, ?2>0, ?3<0 inverted U-shaped curve(e)?1<0, ?2<0, ?3>0 (U-shaped curve)H1: ?1?0?2?0,?3?0This hypothesis should be used for regression models.
To conclude, it can be said that this research proposal mainly focuses on the effect of economic growth of Bangladesh on environmental pollution(carbon di oxide
emissions). This research proposal want to find whether there is any environmental
sustainability on economic growth specially on export performance or not in Bangladesh. Moreover this paper want to know whether there is any EKC curve or not in Bangladesh! If there is any EKC curve then what is the shape of this curve in Bangladesh! These are the main questions in this proposal. This is not so much interesting paper in the whole world but interesting for Bangladesh.
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Submitted By: Tasnim Ahmed