THE IMPACT OF ELECTRICITY PRODUCTION SOURCES ON CO2 EMISSION IN SOUTH ASIAN COUNTRIES: A QUANTILE REGRESSION ANALYSIS

Abstract

This paper examines the impact of electricity production sources on CO2 emissions in five South Asian countries. The economic activities of South Asian countries have been increasing, and energy creation is a major concern because of the consistency in production levels and economic development. The data from 1972 to 2015 is analysed by the quantile regression (QR) method. The results of quantile regression coefficients are statistically significant at a 1% level. The experimental findings from the regression suggest that there is a positive effect of all electricity production sources and related variables on CO2 emissions. The effect of electricity production from coal is greater than that of other emissions. Policies aiming to reduce electricity production sources from coal, oil, and gas could be implemented in alternative ways as they would help to minimize the level of CO2 production without having much effect on electricity production. Further, the study would be conducted by utilizing other economic indicators with the factors of electricity production sources because of the interaction between economic development and energy concentration.