Abstract
Developing countries are facing the problem of environmental degradation. Environmental degradation is caused by the use of non-renewable energy consumptions for economic growth but the consequences of environmental degradation cannot be ignored. This primary purpose of this study is to investigate the nexus between energy consumption, economic growth and CO2 emission in Pakistan by using annual time series data from 1965 to 2015. The estimated results of ARDL indicate that energy consumption and economic growth increase the CO2 emissions in Pakistan both in short run and long run. Based on the estimated results it is recommended that policy maker in Pakistan should adopt and promote such renewable energy sources that will help to meet the increased demand for energy by replacing old traditional energy sources such as coal, gas, and oil. Renewable energy sources are reusable that can reduce the CO2 emissions and also ensure sustainable economic development of Pakistan.
Highlights
Pakistan is a developing country in South Asian countries, economy of Pakistan is growing rapidly and it is expected that the economic growth of Pakistan will continue with same trend in the future
CUSUM and CUSUM of squares indicate that the model is stable because the blue line among the two red lines which shows the stability of coefficients. This primary objective of this paper is to examine the nexus between energy consumption, economic growth and Carbon Dioxide emissions (CO2) emission in Pakistan from 1965 to 2015
Stationarity of each time series was checked through Augmented Dickey–Fuller (ADF) and PhillipsPerron (PP) Unit Root Tests
Summary
Pakistan is a developing country in South Asian countries, economy of Pakistan is growing rapidly and it is expected that the economic growth of Pakistan will continue with same trend in the future. Different researchers identified that environmental degradation is caused by using non-renewable energy consumption and economic growth in developed countries. The estimated results revealed that economic growth, the growth of financial system, international trade and tourism expenditures positively impact the Greece’s CO2 emissions They stated that tourism, as a leading sector in the Greek economy, has severe negative environmental impacts for Greece in the long run. Hanif (2018) studied the influences of economic growth; urban expansion; and consumption of fossil fuels, solid fuels, and renewable energy on CO2 emission in SubSaharan Africa economies from 1995 to 2015 by utilizing the GMM model for examination of the association among the study variables. Saboori et al (2017) examined the association of oil consumption, economic growth and with environmental degradations in three Asian countries from 1980 to 2013 by applying Johansen cointegration test for checking the relationship among the study variables. Different energy structures between the developing and developed countries are different because of technological and economic conditions
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