Environmental Policy and CO2 Emissions: A Study of South Asian Countries
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The policymakers and academics in developing countries are concerned about the rapidly increasing pollution, particularly the CO2 emissions. The South Asian Association for Regional Cooperation (SAARC) countries are currently experiencing rapid economic growth, leading to increased CO2 emissions. To address this challenge, various policies have been formulated, with the Environmental Protection Act being a significant initiative within the SAARC nations. This study aims to analyze the effectiveness of the Environmental Protection Act (EPA) in mitigating CO2 emissions and evaluates its indirect role in reducing carbon emissions. By employing the Fixed Effects methodology and using the panel data from 1965 to 2019 across four South Asian countries (Bangladesh, India, Pakistan, and Sri Lanka), this study revealed significant findings. The analysis demonstrated a negative correlation between the Environmental Protection Act and CO2 emissions, indicating its effectiveness in mitigating the environmental degradation. The study also examined how this policy moderates the influence of other sources of pollution on CO2 emissions. However, it is important to acknowledge the developmental stage of these four nations, which may limit their resources in addressing the environmental challenges. Consequently, this research highlights the positive impact of implementing environmental policies, such as the Environmental Protection Act, in mitigating pollution and reducing the CO2 emissions. It further emphasized upon the need to maintain and strengthen such policies to promote a healthier environment.
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