Abstract
This study aims to examine the impact of coal energy consumption on the economic progress in Pakistan by using annual time series data during 1972–2019. Three-unit root tests were employed to rectify the variables’ stationarity. The quantile regression approach with the extension of cointegration regression test was utilized to check the variables interaction with the economic progress. The outcomes of the quantile regression uncover that coal energy consumption in power sector and coal energy consumption in brick kilns have adverse influence to the economic progress, while total coal energy consumption has a productive association with the economic progress. Similarly, the findings of cointegration regression analysis uncover that via FMOLS (Fully Modified Least Squares) and DOLS (Dynamic Least Squares) that variables coal energy consumption in power sector and brick kilns have an adverse connection with the economic progress, while total coal energy consumption uncover a productive linkage to the economic progress in Pakistan. Pakistan is still facing a deep energy crisis because of the lack of energy production from cheap sources. New possible policies are required in this direction to improve the energy sector by paying more attention to the alternative energy sources to foster the economic progress.
Highlights
Introduction published maps and institutional affilEnergy plays a vital role in the economic development of any economy
We have previously found that an increased use of energy, especially carbon sources, in economic development is associated with an increase in carbon emissions, which are harmful to the environment and human health
The correlation for the variables economic progress, coal energy consumption in the power sector, coal energy consumption in the brick kilns and total coal energy consumption demonstrated that all variables are correlated with each other
Summary
In addition to promoting sustainable development, the energy sector improves resource efficiency while creating jobs, and it supports the global economic success. Massive amounts of energy consumption of both households and industry sectors have generated pollutant emissions that are a curse of the humanity, among them we find carbon dioxide and other greenhouse gases This has allowed society to modernize and enhance its living conditions, along with inevitable public health challenges, via urbanization and industrialization [21,22]. It is well-known that industrial and economic activity still relies on the use of fossil fuel in most nations This generates a tangled situation, as economic progress influences the investments required for the renewable energy sector. One of the explored themes was how to employ the alternative energy sources to lessen the effect of carbon dioxide emissions on the environment and enhance energy usage sustainability in highly energy-dependent nations in order to foster economic development. There is no clear relationship between energy use and economic growth [47,48]
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