Carbon Emissions, Water Scarcity and Geopolitics in South Asia: Evidence from Cross-Sectionally Dependent Panel
DOI:
https://doi.org/10.55737/trt/v-iv.320Keywords:
Environmental Sustainability, Control of Corruption, Geopolitics, Carbon Emissions, Water Scarcity, South AsiaAbstract
This study investigates the role of environmental sustainability in shaping geopolitics in South Asia. Environmental Sustainability is proxied by carbon emissions and water scarcity, while control of corruption serves as a proxy for geopolitical governance. The analysis employs a balanced panel of selected South Asian countries over the period from 1996 to 2024. After confirming cross-sectional dependence, slope heterogeneity, mixed orders of integration, and long-run cointegration, the study employed the CS-ARDL model to estimate both long and short-run relationships. Robustness of the findings is examined through the application of PCSE. Findings revealed that carbon emission, GDP per capita, and renewable energy consumption are negatively associated with control of corruption, while water scarcity improves governance by encouraging institutional reforms and strengthening accountability mechanisms. In the short run, all the variables are insignificant except GDP per capita. The error correction coefficient is negative and statistically significant, showing that 29% of short-run deviations from the long-run equilibrium are corrected within each period. These findings contribute to the literature on the environment-geopolitics nexus by reversing the conventional causal perspective.
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