Nexus between Human Development Index (HDI) and CO2 emissions in a developing country: decoupling study evidence from Bangladesh

Even if developing nations are entitled to take part in the attempts of decreasing carbon emissions to elude alarming environment change, the consequences of carbon lessening goals in Human Development Index of developing nations continue an issue of dispute. Based on the decoupling relationship and index decomposition, the aim of the study is for determining the nexus between the Human Development Index and CO2 emissions from the year 1990 to 2018 in Bangladesh. The outcomes exposed that Bangladesh accomplished weak and strong decoupling all through the analysis time. From the index decomposition of different factors point of view, it is revealed that variation in economic activity factor produces a significant amount of CO2 emissions which is 0.0623 tonnes, and in terms of percentage, it stands for 105%. While energy intensity and economic structure factors act an indiscernible part in the rise of CO2 emissions and in terms of percentage, it stands for 10.77% and 2.77%, respectively. Contrary, CO2 emissions’ coefficient and energy structure factors are liable for decrease carbon emissions to some extent, and in terms of percentage, it replicates 7.27% and 11.97%, respectively. Based on the outcomes, the paper offers regulations for the energy policymaker of Bangladesh on carbon emissions’ alleviation policies and an important decision-making indication to speed up low-carbon growth.