Carbon footprints across transport infrastructure development and industrial output in Pakistan.

Abstract

Over the past few decades, the development of transport infrastructure has attracted huge local and foreign direct investments to raise the overall industrial output in Pakistan. Meanwhile, the transport sector has emerged as one of the most emissions-intensive industrial sectors. Thus, this study is the first to investigate how Pakistan's transport infrastructure across four modes-roads, trains, ports, and airways-affects industrial value addition and carbon footprints in the country. By making use of the theoretical and empirical literature, the study builds carbon emission and economic output models to determine the economic and environmental sustainability of transport infrastructure development in the country. The empirical findings conclude long-term environmental sustainability issues in transportation infrastructure development. All means of transport infrastructure development have a significant positive impact on carbon dioxide emissions in the country. Only ports and highways, however, provide a positive contribution to industrial output. Additionally, population growth, capital, labor, and urbanization are positively linked with the industrial output and carbon dioxide emission in the country, whereas trade openness helps to offset the emission intensity to some extent. Given this evidence, we provide detailed policy implications by highlighting the significance of greener technologies under new transport-related infrastructure investment that addresses SDG-9.