Economic growth and environmental degradation paradox in ASEAN: A simultaneous equation model with dynamic panel data approach

Economic variables are dynamic in nature. This paper uses a simultaneous equation model to assess the complexity of link between economic expansion and environmental deterioration ASEAN. The study examines how CO2 emissions, growth, public health initiatives, control factors interact using panel data from 2011 2020. population, amount forested land, use renewable energy, foreign investment, inflation rate, total exchange reserves, government policies just few examples. In order provide reliable accurate assessment long-term relationship, this employs generalized approach Arellano-Bond moment method. econometric technique deals with issues nonstationary, endogeneity, cross-error correlation, heteroscedasticity.Additionally, two stage least square (2SLS) method was used results’ robustness. According statistical results, there is causal emissions energy consumption. Furthermore, according data, ASEAN showed monotonically growing relationship during sample period. Policymakers may these findings since they can aid implementing measures promote sustainable ecologically friendly development.