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

Abstract

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