WSEAS Transactions on Environment and Development
Print ISSN: 1790-5079, E-ISSN: 2224-3496
Volume 18, 2022
A Composite Impact of Urbanization and Liberalization on Environmental Degradation in Developed and Developing Economies
Authors: , , , ,
Abstract: Now a days, urbanization and liberalization play a crucial role in environmental degradation. However, the composite impact of urbanization and liberalization on environmental degradation is missing in the existing literature. To cover this gap, the current study used the annual panel dataset of 103 developed and developing countries over the period from 1980 to 2018, to empirically investigates the composite impact of urbanization and liberalization on environmental degradation. For estimation purposes, this study employed the fixed, Random effect, Least Square Dummy Variables (LSDV), and 2SLS approach. The study results indicate that the composite impact of globalization and urbanization have a positive effect on CO2 emissions in developed economies, which explains that globalization speeds up urbanization with increasing carbon emissions. Furthermore, the results show that globalization is linked to urbanization through trade, economic growth, capital-labor ratio, and financial integration in developing economies by reducing the environmental quality. Based on estimates results, the current study recommends that a comprehensive policy is required for urban improvement and for the creation of smart cities to decrease the urbanization influence on environmental pollution.
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Keywords: Urbanization, Liberalization, Environmental Degradation, Least Square Dummy Variable (LSDV), Two-Stage Least Square (2SLS)
Pages: 873-883
DOI: 10.37394/232015.2022.18.82