Association between energy consumption preferences and macroeconomic stability: an empirical analysis from developing Asia.

The study examined the impact of macroeconomic performance and energy consumption on carbon emissions in Asian developing countries. Although, macroeconomic performance is a critical measure for the determination of development in societies. Thus, the examination of macroeconomic performance variables is a core issue for policymakers. The panel quantile regression model assesses the macroeconomic performance at several quantiles, ranging from 0.05 to 0.95. The effect of macroeconomic performance and energy consumption on CO emissions has also been established. The findings indicate that CO emissions and macroeconomic performance are negatively associated in all quantiles of macroeconomic performance. Though, fossil fuel energy and population growth positively influence carbon emissions in all low and medium quantiles but this relationship becomes weaker in the upper quantiles. In addition, hydroelectricity consumption and carbon emissions are negatively and significantly associated in the quantile ranges of low and higher. Based on the aforementioned results, the study suggests the formulation of such policies that can improve macroeconomic performance in the region and the promotion of hydel energy instead of fossil fuels to reduce environmental pollution in developing Asian countries. Moreover, the population control program, promotion of renewable energy, and dangers of fossil fuel consumption should be a part of public policies to control environmental issues by reducing carbon emissions at the regional level.