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    The environment economy trade-off in the Philippines: an assessment of sustainable economic growth using decoupling, decomposition, and cointegration analyses
    (2022-06-20) Cabrito, Roni N.; Martinez, Paula Joy B.; Alburo, Florian A.
    The urgency of the climate crisis underscores the dire consequences of economic growth at the expense of the environment. This study aimed to provide a comprehensive assessment of the sustainability of the Philippine economy in the years 2015-2020 through a supplemented 2x2x2 (two-by-two-by-two) methodology: two analyses (decoupling and cointegration) were performed in two scales (regionwide and countrywide) using two measures of environmental degradation (regional CO2 concentrations and national CO2 emissions) to characterize the short- and long-run dynamics of economic growth and environmental degradation, with a decomposition method to supplement the short-run analysis. Findings under both scales corroborated a decoupling trend from z6i5-2019, followed by a recoupling phase at the regional level and a decoupling phase at the national level during the height of the pandemic in 2020. The region of BARMM consistently had low environmental intensity while the Central Luzon transitioned from being the least environmentally intensive region in io16-2017 to having the highest environmental intensity in 2019-2020. On a macro-scale, economic intensity was the key driver of CO2 emission changes while energy intensity was the primary inhibitor. The short-run analysis gave indications of a trend towards energy efficiency in the country, and while co integration regression outcomes confirmed a long-run convergence between CO2 emissions and GDP, findings deny the presence of the EKC hypothesis in the Philippines.