Green Supply Chain Management, Environmental Degradation, and Energy: Evidence from Asian Countries

Abstract

The purpose of this study is to test the relationship among green logistics, environmental degradation, and energy demand. The system generalized method of moment (system GMM) is used to study the data of Asian countries and four subregions in Asia. The estimation results show that logistics operation consumes nonrenewable energy such as fossil fuels, which has a negative impact on environmental sustainability and energy demand. The service quality and capability (LPITC) in the logistics performance index has a significant contribution to reducing carbon dioxide emissions. The logistics infrastructure (LPIIN) has significantly reduced the energy consumption in Asia, while the customs (LPIC) has significantly increased the energy demand. Other indicators of LPI also have a significant impact on the environment and energy in different subregions of Asia. Industrialization and urbanization both increase carbon emissions in Asia, while trade opening reduces carbon emissions. At the same time, these three variables have a positive impact on reducing energy consumption. The results show that logistics performance is significantly related to environmental degradation and energy, and renewable energy and green supply chain management can reduce the harmful effects of logistics activities on environment and energy. Therefore, Asian countries should give priority to environmental sustainability in supply chain management and encourage the application of green practices in logistics.