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Urbanization and carbon emissions: a panel threshold analysis
1College of Finance, Qilu University of Technology, Jinan, Shandong, China.
Abstract:
This study analyzes whether an optimal level of urbanization (UB) exists at which the newly industrialized countries (NIC) can reduce carbon dioxide emissions (CE). The results suggest that UB has a positive effect when it is lower than the threshold value. Whereas UB has a negative effect on CE when it is above the threshold value, identify an optimal level in the NIC countries for CE. Moreover, industrialization, economic growth, and energy consumption have a positive significant impact on CE while renewable energy has a negative effect. The study is useful for policymakers to realize optimal UB level to reduce CE. Moreover, the balanced developmental approach for the rural-urban areas and encouragement of internal migration to small cities will minimize the flow of migration to metropolitan cities. Sustainable economic development required continuous energy supply; thus, the event of low carbon energy is extremely vital. The development of low carbon energy is very important and policymakers should improve the structure of energy consumption.
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