Abstract
This study examines economic benefits of Compressed Natural Gas (CNG) vehicles in Pakistan where social cost is explained by CO 2 emission from transport (million metric tons), using time series data from 2000 to 2010 of Pakistan. The result shows that there exists a significant relationship of both economic & financial cost with CO 2 emission levels. Individual effects of variables/predictors included in the model are illustrated. All three variables are found to be statistically significantly at 0.1. Increasing number of converted CNG vehicles are negatively related to overall CO 2 emission through transport. It means CNG vehicles are reducing the social cost in Pakistan resulting in an overall economic benefit to society in terms of reduced CO 2 emissions. The results proved that, with an increase in 1000 CNG vehicles on the road, CO 2 emissions declined by .008 m metric tons. It is recommended that govt. of Pakistan should take some positive steps in order to improve economic and financial cost of CNG in Pakistan because in comparison with social cost of CNG in Pakistan, it can be deduced that financial/economic cost that has both positive and negative relationship. The results also show that CNG is contributing less in the overall pollution level in Pakistan as compared to other burning fuels.
Highlights
The objective of this study is to investigate which variable has a significant effect on economic and financial cost of Compressed Natural Gas (CNG) in Pakistan and by the help of this study it will be easier to reduce CO2 emission in Pakistan once the important variables are identified. 1For research purpose, annual time series data is collected from 2000 to 2010 as sample
The third variable identified as CNG consumption was 87259.27, in 2000, increased to 113321.1, in 2010.All of these variables show an increasing trend with the passage of time which suggests that CNG is being preferred by consumers as compared to other fuel sources because it is the most economical and environmental free source of fuel
When we compare the economic and financial cost of CNG with other fuels, we find that the social cost of CO2 emission through CNG vehicles from transport is significantly less than other fuel sources
Summary
The objective of this study is to investigate which variable has a significant effect on economic and financial cost of CNG in Pakistan and by the help of this study it will be easier to reduce CO2 emission in Pakistan once the important variables are identified. 1For research purpose, annual time series data is collected from 2000 to 2010 as sample. Variables considered include CNG Stations, Consumption, CNG vehicles. This selection has been done by keeping in consideration the importance of each variable and the past 2010 the numbers of CNG stations has increased to 3331. The third variable identified as CNG consumption was 87259.27, in 2000, increased to 113321.1, in 2010.All of these variables show an increasing trend with the passage of time which suggests that CNG is being preferred by consumers as compared to other fuel sources because it is the most economical and environmental free source of fuel. When we compare the economic and financial cost of CNG with other fuels, we find that the social cost of CO2 emission through CNG vehicles from transport (million metric tons) is significantly less than other fuel sources
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