The relationship between environment and logistics performance: Evidence from Asian countries

Logistics performance plays an important role in green supply chain management that leads to environmental sustainability. The objective of this paper is to analyze the nexus between logistics performance and environmental degradation using data obtained from 42 Asian countries between 2007 and 2016. The system-generalized method of moment (GMM) regression model was used to investigate the data from Asian countries collectively and the four sub-regions of Asia. The estimates show that the logistics performance is significantly related to environmental degradation. International shipment in logistics performance index (LPI) significantly decreases CO2 emissions while timeliness of logistics significantly intensifies the CO2 emissions in Asian countries. Other sub-categories in LPI such as tracking and tracing, services quality and competence, infrastructure quality, and efficiency of customs also have a significant impact on the environment in different sub-regions of Asia. Industrialization and urbanization both increase CO2 emissions in Asian countries while trade openness decreases CO2 emissions. The results indicate a significant association between logistics performance and environment that accentuates the priorities on environmental sustainability and green supply chain management in Asian countries.