Environment and female entrepreneurship in Southeast Asia: investigation of the environmental Kuznets curve hypothesis

Abstract

This paper examines the relationship between female entrepreneurship and environmental implications in ASEAN economies. While economic growth and affluence benefit society, they come at the cost of environmental degradation, particularly rising carbon dioxide levels and ecosystem concerns. Women entrepreneurs in Southeast Asia can potentially support their families and contribute to societal development by starting their own businesses. Their ventures provide fresh perspectives on societal challenges and enable active participation and contribution to creative endeavors, leading to economic and social empowerment with ripple effects on families and communities. To assess the environmental consequences of women’s entrepreneurial activities, the study applies the bias-corrected method of moments and tests the Environmental Kuznets Curve hypothesis across ten ASEAN nations from 1980 to 2021. Results show cross-sectional dependence in all variables and confirm a long-term relationship within the EKC model. The fixed-effects estimator with bias correction is deemed the most suitable model. Findings indicate that GDPpc leads to decreased emissions, while the square of GDPpc contributes to increased emissions; however, the cubic term of GDPpc leads to decreased CO2 emissions, supporting the “inverted N” curve distribution of emissions across ASEAN nations proposed by the EKC theory. Additionally, the study reveals that higher percentages of female entrepreneurs are associated with increased carbon dioxide emissions, potentially due to increased efforts to support and develop female entrepreneurs. Conversely, a reduction in the gender gap in marriage, divorce, remarriage, and domestic violence leads to a shift away from entrepreneurial activities among women, positively impacting the environment.