Globalization and Environmental Quality in Emerging Economies: A Panel Quantile Approach across ASEAN, BRICS, and Next-11

Abstract

This study investigates the link between globalization and environmental quality in emerging economies, using panel data from 2011 to 2024. Theoretically, globalization can shape environmental outcomes through multiple channels. On one hand, increased trade, technology transfer, and cross-border cooperation can promote cleaner production and environmental standards. On the other hand, economic expansion and industrial integration may heighten environmental pressure through resource depletion and emissions. To explore these dynamics, the study employs Panel Quantile Regression (PQR) under a fixed effects framework for three groups of emerging economies: ASEAN, BRICS, and Next-11. Environmental quality, measured by indicators such as lead exposure, outdoor air pollution, particulate matter, and waste recovery, is regressed on overall globalization, as captured by the KOF index. The results reveal a U-shaped relationship across all groups, suggesting that globalization initially improves environmental quality but later deteriorates it after reaching a certain level. However, when interacting globalization with renewable energy consumption, the moderating effect differs across groups. Institutions and technological innovations are included as control variables to account for governance and innovation dynamics. These findings highlight that the environmental outcomes of globalization depend on the stage of integration and the capacity to manage energy transitions effectively.