Clean energy, population density, urbanization and environmental pollution nexus: Evidence from Bangladesh

Environmental problem is a much discussed issue worldwide. It is a more serious issue for Bangladesh, which is vulnerable to frequent natural disasters. Therefore, this work aims to identify the short-run and long-run causal relationships between clean energy, population density, urbanization, economic development, trade openness and environmental pollution in Bangladesh using the data of 1973 - 2014. Different time series related econometric techniques such as Augmented Dickey-Fuller test, Phillips-Perron test, Autoregressive Distributive Lag (ARDL) bounds test and the Toda-Yamamoto Granger causality test are applied to find out outcomes. Our findings are: the use of clean energy improved the environmental quality, but population density, urbanization and economic growth are found to be detrimental to the environment; a unidirectional causality of CO2…