The Impact of Air Transportation on Carbon Dioxide, Methane, and Nitrous Oxide Emissions in Pakistan: Evidence from ARDL Modelling Approach

Abstract

No one can deny the progression and innovation in the aviation transportation collected at national and international level. But the accountancy of the impact of air transportation on environmental degradation is naive and emerging trend of the current era. The air transportation versus environment is the key contribution to the literature that is solely conducted for Pakistan first time in this context. The objective of this research is to compute the impact of air transportation on carbon dioxide emissions, nitrous emissions and methane emissions separately in the three models by applying ARDL bound test approach during 1990 to 2017. The result depicts significant and positive relation of air transportation (carriage) to carbon dioxide emissions (0.77), nitrous emissions (0.20) and methane emissions (0.38) in long-run. The short-run results infer that the air transportation (passenger) has significantly positive relation to carbon dioxide emissions (0.278), nitrous emissions (0.207), and methane emissions (0.080). The econometric outcomes show the significant and direct relation to transportation (both passenger and cargo) to carbon dioxide, methane, and nitrous oxide emissions in short and long-run. Moreover, per capita GDP, population density, and energy demand also significantly affect the environment showing significant and positive coefficients to all three categories (carbon dioxide, methane, and nitrous oxide) of emission. In case of Pakistan, FDI and trade for this duration didn’t significantly contribute to the CO2, NO2, and methane emissions. Since the last decade the economic issues of Pakistan like terrorism, political instability, energy crises, and poor management along with the worst performance by tertiary sectors have severely hit the economy, and as a result, the FDI and trade sector has tormented in a substantial proportion. Finally, pairwise Granger causation also supports the short and long-run consequences. The outcomes suggested that the fuel-efficient energy use and technological diversification in the transportation sector are essential to mitigate the degrading environmental emissions.