Abstract:
The objective of the study is to examine the relationship
between air pollution, fossil fuel energy consumption,
water resources, and natural resource rents in the panel of
selected Asia-Pacific countries, over a period of 1975–2012.
The study includes number of variables in the model for
robust analysis. The results of cross-sectional analysis show
that there is a significant relationship between air pollution,
energy consumption, and water productivity in the individual
countries ofAsia-Pacific. However, the results of each country
vary according to the time invariant shocks. For this purpose,
the study employed the panel least square technique which
includes the panel least square regression, panel fixed effect
regression, and panel two-stage least square regression. In
general, all the panel tests indicate that there is a significant
and positive relationship between air pollution, energyconsumption, and water resources in the region. The fossil
fuel energy consumption has a major dominating impact on
the changes in the air pollution in the region.
