The Effect of Non-Renewable and Renewable Energy Consumption on CO2 Emissions: Evidence from Pakistan

Abstract

Concerns over the harmful consequences of climate change and global warming have grown since the 1990s. The primary subjects of discussion when it comes to climate change are energy production and consumption, as burning fossil fuels is the primary purpose of greenhouse gas emissions. Furthermore, using fossil fuels to produce commodities endangers human health and contributes to environmental damage. Clean, sustainable energy sources that are abundant in the natural world and do not pollute the air are becoming more and more important to modern cultures. This study looks at the long-run relationship between CO2 (carbon emissions) in Asian countries between 1990 and 2021 and the utilization of non-renewable and renewable energy sources. The significance of renewable energy sources and their impact on CO2 emissions are the main points of emphasis. According to the data, using nonrenewable energy sources causes CO2 emissions to increase, while using renewable energy sources causes them to decrease. CO2 (carbon emissions) and economic growth are positively correlated; as growth picks up speed, so do emissions. Furthermore, the square of economic expansion produces the opposite effect, lowering emissions of carbon dioxide. This observation lends credence to the Kuznets theory. Moreover, even though foreign direct investment has the opposite effect, the rate of urbanization is one of the reasons of the rise in CO2 (carbon emissions).