Assessing the Environmental Impact of Energy Efficiency and Renewable Energy: Evidence from Pakistan

Abstract

Decreased environmental degradation has come to the forefront of policy debates and academic investigations. Using data from the Pakistan economy, which accounts for a substantial amount of global carbon emissions, investigate the effects of energy efficiency, human capital, renewable energy, and economic growth on the environment from 1990 to 2020. We reveal the influence of human capital by focusing on education investment to provide an understanding of the necessity of policy-making in Pakistan to prevent environmental deterioration. According to the findings, human capital expansion is substantially associated with lower CO2 emissions. Using the autoregressive distributed lag model (ARDL) estimate method, we present a complete analysis of the energy efficiency-environmental deterioration nexus. Energy efficiency, renewable energy, and human capital all are adversely associated and considerable influence on the environment. To attain a green environment, the study recommends strategies to boost energy efficiency, renewable energy, and human capital.