What causes environmental degradation in Pakistan? Embossing the role of fossil fuel energy consumption in the view of ecological footprint.

Abstract

For decades, environmental degradation has become a universal challenge, and for sustainable environment quality, a true and broader proxy is vital. Pakistan is an ecological deficient country in the world, being the sixth-largest economy (population-wise). This study investigates the prime sources of environmental degradation through ecological footprint in Pakistan. The yearly time-series data spanning 1972 to 2020 is utilized for a set of regressors as fossil fuel energy consumption, trade openness, arable land, industrial share to GDP, economic growth, and population growth. We use various econometric techniques, the bounds test, ARDL (short and long run) model, FMOLS, and Granger causality test. Bounds test confirms the existence of cointegration among variables included in our model. The ARDL estimates suggest that fossil fuel energy consumption, trade openness, and population growth are the leading factors affecting the environment. Fossil fuel consumption and population growth significantly damage the environment in the short and long run. Contrasting to that, trade openness is substantial to the environment quality. The FMOLS approves the robustness of the cointegrating findings. Moreover, a unidirectional causal relationship from economic growth to the ecological footprint (GDP → EFP). And also, the ecological footprint of arable land (EFP → AL) is witnessed. At the same time, bidirectional causality is found between growth rate and fossil energy consumption (GDP ↔ FEC). Lastly, we recommend some policy options to improve environmental quality in Pakistan.