USK Conferences, The 14th AIC 2024 on Social Sciences

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Can Education Drive Cleaner Growth? An EKC Study of ASEAN-10
Rizki Fadhilla, M. Shabri Abd. Madjid, Aliasuddin Aliasuddin

Last modified: 2024-11-13

Abstract


This study investigates the Environmental Kuznets Curve (EKC) hypothesis in ASEAN-10 countries with a focus on the impact of education expenditure on CO2 emissions. Using panel data from 2002 to 2020, the objective is to examine whether economic growth follows the EKC pattern in ASEAN-10 and to assess the role of education spending in shaping environmental outcomes. The analysis employs a panel ARDL (Auto-Regressive Distributed Lag) model to capture both short-run and long-run relationships. The results indicate that the EKC hypothesis holds in the ASEAN-10 context. In the short run, GDP squared (GDP²) shows a negative and significant effect on CO2 emissions in Malaysia and Thailand, suggesting these countries are on a path toward reducing emissions as economic growth progresses. In the long run, education expenditure demonstrates a significant and negative impact on CO2 emissions across the ASEAN-10, highlighting the importance of educational investment in achieving sustainable environmental outcomes. The findings support the notion that education can be a pivotal factor in promoting cleaner growth, as it may foster greater environmental awareness, technological advancement, and sustainable practices. Policy recommendations include increasing education budgets, especially toward programs that emphasize environmental sustainability and green technology skills, as these can accelerate the decoupling of economic growth from emissions. Additionally, ASEAN countries should adopt policies that incentivize cleaner production and promote sustainable consumption patterns, leveraging education as a foundational tool for long-term environmental improvement.


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