Dynamic Relationship between Environmental Degradation and Institutions in Pakistan

Abstract

The paper’s attempt is to fill up the gap in the energy literature with a complete nation revise for Pakistan. We examine the affiliation between CO2, institution quality (IQ), GDP, energy expenditure (EU) and trade openness (TO) for Pakistan over the period of 1984-2014. ARDL model is used for co-integration, CUSUM test for analysis. The consequence shows that there is a long run affiliation with the variables. In addition, we find in one direction fundamental affiliation successively from GDP to CO2 emissions.