Conclusion

This research examined the effect of energy consumption urbanization, trade openness,
industrial output and GDP on the environment degradation in SAARC countries. For the
analysis the researcher used generalized method of moment technique. The results of panel
analysis showed that the energy consumption, GDP and urbanization had negatively
influence the ecological footprint with coefficients values (-0.571, -0.034, -0.501) with
probability values (0.0000, 0.0071, 0.0000) respectively in the selected SAARC countries.
Which means that the efficient way to use the energy in a productive and natural ways the
pressure on the environment shall be reduced, results of this study examined that if the
efficient energy use shall increase by 1% it will reduce the ecological footprint by 57%; the
gross domestic product which is the indicator for the development of a country, the panel
analysis of this study explored that this is also the main factor regarding environment saving
and keeping the ratio of ecological footprint stable i.e. the more the country shall developed
the lessor shall be their ecological footprint, the results of this study examined that if the
gross domestic product shall increase by 1% it will reduce the ecological footprint by 4%; the
third variable in this estimation which I also negatively affect the ecological footprint was
urbanization, the value openly disclosed that if the urban facilities provided by the
government and reduced the ruralism this will also reduce the ecological footprint, the results
showed that if the urbanization shall increase by 1% it will reduce the ecological footprint by
50%.

In this research study where the above variables made reduction in the ecological footprint,
the two variables were recorded which having positive results with the dependent variables in
the set of the selected SAARC countries. The first was trade openness and the second was
industrial outputs, these both has positive impact on ecological footprint with coefficients
values (0.854, 0.073) with probability values (0.0000, 0.5987) respectively. These results
explored that may be the trade openness exaggerate the economic growth in a way but the
other side it affects the environment of the country adversely, i.e. some of the treats of the
domestic country may violated during trade openness which made increase to the value of
ecological footprint, for example if the value of trade openness were increase by 1% it made
uplift to the value of ecological footprint by more than 85%. By the same way industrial
outputs also made the adverse effect on the environment i.e. due to number of pollution type
were contribute during the manufacturing processes which affect the environment and made
the ecological footprint value maximum in future than the currently recorded ratio, the results
of this analysis shows that if the value of industrial output were increase by 1% it will
increase the value of ecological footprint by 7%. The tow-way causal association between
trade openness and GDP which means that these both were affect each other broadly. There
was unidirectional causal relationship also recorded during the analysis which describes the
direction of the causality of one variable to another variable: the unidirectional causal
relationship between Ecological footprint to GDP, Energy consumption to GDP, Industrial
output to Energy consumption, Urbanization to Energy consumption, and Urbanization to
Trade openness.

Recommendations

The results of this study recommended the energy efficiency project shall be started in these
countries to improve the energy saving especially fossil fuel energy and enhance the use of
renewable energy to reduce the ecological footprint. It is also recommended that the policies
shall adopt to promote the gross domestic product by developing the revenue sectors of the
countries in SAARC region. It was observed that urbanization also reduces the ecological
footprints of countries, it is important for policy makers in urban planning to promote the
urbanization levels, which can help reduce the environmental damage. Moreover,
recommended to the investigated countries to combat the polluted industries in particular to
follow these regulations which can help to reduce their pressure on the environment. This can
be achieved by a better corruption control. Furthermore, it is also recommended for these
countries to take trade related actions and strategies to increase environmental protection
because total trade increases the ecological footprints of countries.

Since this study did not formulate the political and social awareness variable during the
estimation which is very important. It is recommended to incorporates these economic
indicators in the model and compute the ecological footprint. The results from this
examination could provide a better understanding of the interrelation between the economic
indicators and the ecological footprint which describes the overall damage to the
environment.
Abstract

This study examines the effect of energy consumption urbanization, trade openness,
industrial output and GDP on the environment degradation in SAARC countries. For the
analysis the researcher used generalized method of moment technique. The directional
causality was observed by applying the panel pairwise causality between the variables. The
data structure checked by applying the Lin, Levin test, ADF fisher, PP fisher and IM, Pesaran
test for panel unit root i.e. ecological footprint, (GDP) and urbanization are stationary at I (0).
Energy consumption, industrial output and trade openness are stationary at I (0). The results
of panel GMM analysis showed that the energy consumption, GDP and urbanization had
negatively influence the ecological footprint, while the trade openness and industrial outputs
both has positive impact on ecological footprint. The granger causality test show that the two-
way causal association between trade openness and GDP. While the unidirectional causal
association between ecological footprint to GDP, energy consumption to GDP, industrial
output to energy consumption, urbanization to energy consumption, and urbanization to trade
openness. It was recommended that policies shall adopt to enhance the use of renewable
energy, GDP and urbanization level while open trade control polices should be developed for
the free float trading system and the last but not the least corruption should be cut down
because the regulations made for the industries is enhanced by the corrupt leader ship.