The decoupling dilemma: Examining economic growth and carbon emissions in emerging economic blocs

Abstract

This study explores whether emerging economic blocs can decouple economic growth from carbon emissions amidst global climate change concerns, integrating Environmental Kuznets Curve (EKC) theory, Stakeholder theory , and Ecological Modernization Theory (EMT). Using fuzzy-set qualitative comparative analysis (fsQCA), it examines the relationship between monetary policy and carbon emissions in two key blocs: ASEAN and GCC. Findings reveal that robust GDP growth in ASEAN correlates with higher ecological footprints , underscoring the environmental cost of rapid expansion. Conversely, the GCC region highlights renewable energy consumption as crucial for managing ecological footprints, despite challenges in energy mix adequacy. These insights offer region-specific understandings, challenging conventional views and guiding policymakers in aligning economic growth with environmental sustainability . The research underscores the need for tailored strategies to develop sustainable economic models that decouple growth from environmental degradation.

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