The Relationship between Urbanization, Energy Consumption and Carbon Dioxide Emissions: Panel Ardl Analysis for Newly Industrialized Countries

An increase in the world population, technological advancement, and economic concerns bring along an increase in urbanization and energy consumption. Increasing urbanization speed and energy consumption cause environmental problems. The main hypothesis of this study is based on the idea that urbanization rate and energy consumption increase carbon dioxide emissions in developing countries. To test this hypethesis, the study ana-lyzed the relationship between urbanization, energy consump-tion, and carbon dioxide emission specific to newly industrialized countries. Panel ARDL method was utilized in this study that scrutinized the years between 1990 and 2018. According to the long-term results of the analysis, urbanization negatively affects carbon dioxide emission in the country group aforementioned; energy consumption and economic growth that is control vari-able have a positive effect on carbon-dioxide emission. Regarding short-term results, only the energy consumption positively af-fects carbon dioxide emission while other variables are statisti-cally insignificant. The results of the analysis reveal the necessity of policies towards smart city applications in reducing carbon dioxide emissions in newly industrialized countries. In addition, turning to renewable sources in energy consumption plays a key role in reducing carbon dioxide emissions.