Role of Fossil Fuel and Urbanization on Environment Panel Data of China and Japan

Abstract

This study explore the association between the fossil fuel base power plants, increasing urbanization, manufacturing with (CO2) emissions and their role toward the environmental deterioration of two economies china and Japan. We have used the data of thirty six year 1980-2015, and apply the panel data analysis technique and fixed effect and random effect model for the analysis and find fixed effect model is appropriate by the use of hausman test study conclude that coal base power plants in china and Japan are the significant and positive contributor to raise the level of (CO2) in atmosphere. Oil base power plants are emitting the Carbon significantly and having the positive relationship with (CO2) emissions, natural gas base power plants show a negative effects on (CO2) emission and insignificant in this study .Raising level of urbanization in the cities raise the level of (CO2) emissions, increasing level of manufacturing value addition also significant contributor of (CO2) emission and negatively influencing the environment of the world. China’s and japans government should try to reduce the electricity production from fossil fuels and try to develop the new renewable source of energy which having least carbon emission with optimal cost and also Reduced the level of urbanization and manufacturing to make the environment clean and friendly.