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Title: Energy, Trade, Urbanization and Environmental Degradation Nexus in Sri Lanka: Bounds Testing Approach
Authors: Gasimli, O
Ulhaq, Ihtisham
Gamage, SKN
Shihadeh, Fadi
Rajapakshe, P.S.K
Shafiq, Mohammad
Keywords: energy
environmental degradation
Issue Date: 30-Apr-2019
Publisher: MDPI
Citation: Gasimli, O.; Haq, I.; Gamage, S.K.N.; Shihadeh, F.; Rajapakshe, P.S.K.; Shafiq, M. Energy, Trade, Urbanization and Environmental Degradation Nexus in Sri Lanka: Bounds Testing Approach(2019). Energies , 12, 1655. ttps://
Abstract: This study examines the nexus between energy, trade, urbanization and environmental degradation in Sri Lanka. The time series data has been checked for unit root problem along with unknown structural break. The bounds testing approach confirms the long-term relationship among carbon emissions, energy consumption, income, trade openness, and urbanization in the presence of structural break. The results of the study do not confirm the presence of the EKC (Environmental Kuznets Curve) hypothesis in Sri Lanka. This study finds that energy consumption leads to carbon emissions in both the long term and the short term. Trade openness is degrading environmental quality, as trade is responsible for the accumulation of carbon emissions in the atmosphere. The results of the study confirm that urbanization has been found to have significant and negative effect on carbon emissions. The study finds that the model is in equilibrium and the model will return to equilibrium from any external shock in less than two years. Policy measures are recommended for sustainable environment of the island.
URI: htps://
Appears in Collections:Business and Economics Faculty

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