Globalization and the Environment: A Path to Sustainable Development for SAARC Nations

Abstract

This study examines the complex connection between globalization, environmental sustainability, and international climate policy via the lens of the Environmental Kuznets Curve model. Therefore, it examines the aspects of globalization and the consequent CO2 emissions in certain South Asian countries. The paper analyses panel data from 1991 to 2023, employing multiple econometric approaches to substantiate the Environmental Kuznets Curve theory, which elucidates the inverted U-shaped relationship between economic growth and environmental pollution. The study illustrates that economic globalization facilitates technology transfers and the adoption of sustainable practices, resulting in decreased emissions. Conversely, political globalization obstructs environmental advancements due to inadequate governance and the inability to enforce global agreements. Although social globalization now exerts a minimal positive influence on environmental awareness and sustainability, there appears to be an increase in these characteristics. Therefore, the current research advocates for the advancement of contextualized methodologies, emphasizing institutional frameworks, international cooperation, and climate financing. This study contributes to the literature on balancing economic growth with environmental preservation in a highly integrated global economy and provides policy recommendations for developing countries.