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Asymmetric impact of textile and clothing manufacturing on carbon-dioxide emissions: Evidence from top Asian economies

Haseeb, Muhammad, Haouas, Ilham, Nasih, Mohammad, Mihardjo, Leonardus WW., Jermsittiparsert, Kittisak
Energy 2020 v.196 pp. 117094
carbon dioxide, clothing, fabrics, greenhouse gas emissions, subsidies, sustainable manufacturing, China, India, Indonesia, Pakistan, Vietnam
The aim of the current investigation is to analyze the impact of textile and clothing (T&C) manufacturing on carbon dioxide emission (CO₂) in top Asian economies. In doing so, the study has utilized the quarterly data of percentage of manufacturing covered by T&C sector and CO₂ per capita from the period of 1990–2018. The empirical investigation is carried out by applying the innovative Quantile-on-Quantile (QQ) regression and Granger causality in quantile methods. The findings of the study have identified the significant asymmetric behavior in the quantiles of T&C industry on the quantiles of CO₂ emission in the considered economies. Precisely, the outcomes have documented the significant positive contribution of T&C manufacturing on CO₂ emission in China, India, Pakistan, and Indonesia. On the other hand, the effect of T&C on CO₂ emission is negative in the case of Vietnam. As for causal relationships, the study also confirmed the presence of bi-directional causality between T&C and CO₂ emission in all countries except Indonesia, where the relationship is uni-directional. The study recommended regulators to introduce some incentives and subsidies for the new investors in T&C industry with higher emphasis on green manufacturing.