Is the environmental Kuznets curve valid for transport sector in Pakistan? New evidence for non-renewable energy and urbanization using the QARDL approach.

Abstract

The transportation industry is a significant contributor to greenhouse gas emissions, particularly carbon dioxide. This study broadens the literature on environmental Kuznets curve (EKC) by assessing Pakistan's carbon dioxide emissions in the transport sector taking into account the impact of non-renewable energy, urbanization, and economic growth for the period of 1995-2018 using the novel QARDL model. Moreover, the outcomes of the study make a momentous benefaction to the literature by focusing a sector that contributes substantially to pollution in Pakistan. Specifically, the study finds that the EKC curve is confirmed for Pakistan's transportation sector in moderate to higher quantiles. Urbanization and non-renewable energy are also two other vital ingredients that dramatically aggravate the destruction of the environment. Except for the lowest (0.05th-10th) and highest (90th-95th) quantiles, urbanization affects transport-based carbon pollution positively. The study concludes by proposing some policy interventions for Pakistan.