Interlinkages between Economic Growth, Urbanization, Energy Consumption, and CO2 Emissions in eight ASEAN countries

By Nguyễn Minh Thái VNP-29

Supervisor:  Dr. Nguyễn Quang

Abstract:

This study investigates the dynamic relationships between economic growth, urbanization, energy consumption, and CO2 emissions in eight Southeast Asian countries from 2005 to 2020 using a three-stage least squares (3SLS) regression model. By accounting for endogenous interactions, the model provides a comprehensive view of how these variables influence each other. Key findings reveal that GDP growth drives urbanization, while the industrial sector significantly contributes to increased energy use and CO2 emissions. A 1% population growth results in a 1.39% rise in energy consumption, and a 1% increase in urban population leads to a 5.5% surge in CO2 emissions. These trends highlight the environmental impact of unmanaged urbanization and its strain on energy infrastructure. The study emphasizes renewable energy as a crucial strategy to mitigate these challenges and underscores the need for sustainable energy policies and urban planning to balance economic development and environmental sustainability in the region