Impact of human capital and natural resources on environmental quality in South Asia

Abstract

AbstractThis study examines the importance of human capital and natural resources on environmental quality in South Asia by using panel data that ranges from 1975 to 2021. Advanced cointegration approaches establish the long-term linkages between human capital, natural resources, economic growth, economic growth squared, urban population, industrial value added, and ecological footprint. To explore the long and short-run association among these variables, this study applied the panel autoregressive distributed lags (ARDL) model. The outcome designates that human capital has a negative and significant alliance with environmental quality, whereas economic growth and economic growth square affect environmental quality positively and negatively, confirming the existence of the environmental Kuznets curve (EKC) hypothesis. Urban population growth and natural resources have significant negative associations with environmental pollution, whereas industrial value added increases the pollution levels in South Asia. Lastly, the outcome of the interaction between human capital and natural resource rent on the ecological footprint has a significant positive effect. This study recommends that South Asian nations improve their human capital to promote industrial modernization, expansion of green technology, and energy-efficient habits. Utilizing natural resources also helps South Asian nations maintain a clean ecosystem. Additionally, South Asian nations ought to vigilantly track the negative consequences of industrialization on the atmosphere. Thus, ecological sustainability requires human capital and natural resources.