A Revised Environmental Kuznets Curve Study for South Asia: The Role of Tertiary Education and Energy Use in CO₂ Emissions

Abstract

Environmental degradation has intensified globally over the past two decades due to economic growth, energy consumption, and human activities, prompting increased interest in examining whether education can help mitigate CO₂ emissions and support sustainable development within the Environmental Kuznets Curve (EKC) framework. This study re-investigates the Environmental Kuznets Curve (EKC), and the impact of GDP, higher education, and energy use on environmental deterioration, specifically carbon emissions, using panel data analysis. To frame the research, it explores the application of the EKC theory in South Asian nations. Focusing on Bangladesh, India, and Pakistan from 1985 to 2024, the analysis applies a Fixed Effects (FE) model to derive statistically significant inferences and coefficient estimates. To ensure robustness, Fully Modified Ordinary Least Squares (FMOLS) and Canonical Correlation Regression (CCR) are employed, and the results are validated using a panel cointegration test. The findings indicate that the EKC theory is relevant for these LMICs. In the short run, higher education and energy use are found to be strong, positive, and significant contributors to carbon emissions at the 1% significance level. However, in the long run, tertiary education significantly reduces environmental degradation. Furthermore, the interaction between education and energy consumption yields different outcomes: in the short run, it reduces carbon emissions, but in the long run, this effect is not sustained. As a result, these three nations should encourage increased consumption of renewable rather than non-renewable energy. In summary, energy consumption and tertiary education are identified as drivers of carbon emissions, while economic growth and development alone do not alleviate environmental deterioration. Based on these insights, the study recommends that governments promote eco-friendly education and support green energy projects to improve environmental quality and reduce carbon emissions.