The Impact of Renewable Energy Consumption, Economic Growth and Exports on CO₂ Emissions in Pakistan: An ARDL Approach

Imran Ali

Abstract


The dynamic relationship among CO₂ emissions and Economic factors such as renewable energy consumption, GDP growth, and exports is an important aspect in view of environmental sustainability and economic development for developing countries like Pakistan. This research aims to explore the short-term and long-term relationship between CO₂ emissions and renewable energy, GDP growth, and exports in Pakistan. by using data from the year 1991–2022 and the ARDL technique of cointegration to check both long and short-term relationships among GDP, RE, exports and CO₂ emissions. and to check the stability and robustness of the model after estimation, a range of diagnostic tests is carried out. These include descriptive statistics, unit root tests, ARDL bounds testing. The results of the ARDL analysis reveal that Increased use of renewable energy significantly reduces CO₂ emissions in both the short and long term. GDP growth is associated with increased CO₂ emissions, both currently and with a lag, indicating a persistent relationship between economic activities and carbon emissions. In the short term, increased exports are associated with a decrease in CO₂ emissions, and in the long term, exports do not significantly affect CO₂ emissions. This paper, therefore, further contributes to what the literature provides through an in-depth analysis of how economic activities and environmental impacts interplay in Pakistan, emphasizing balanced economic and ecological policies for long-term sustainability.


Keywords


Consumption of renewable energy; Economic growth rate; CO₂ emissions; ARDL; Export; Economic development; Sustainable environment

Full Text:

PDF

References


Abbas, Q., Hussain, S., & Iqbal, J. (2021). Effects of energy consumption on the environmental footprint and emissions: Evidence from Pakistan. Environmental Science and Pollution Research, 28(10), 1-15.

Ali, A., Chandio, A. A., & Shah, A. A. (2017). The impact of energy consumption and CO₂ emissions on economic growth: Empirical evidence from Pakistan. Renewable and Sustainable Energy Reviews, 72, 1233-1240.

Alia, W., Sadiqb, F., Kumail, T., & Aburumman, A. A. (2021). Do international tourism, structural changes, trade openness and economic growth matter in determining CO2 emissions in Pakistan? Tourism Analysis, 26, 293-305. https://doi.org/10.3727/108354220X15957749192088

Danish, B., Zhang, Z., Wang, Z., & Wang, B. (2017). Energy production, economic growth and CO₂ emission: Evidence from Pakistan. Natural Hazards, 90, 27-50.

Danish, Baloch, M. A., & Suad, S. (2018). Modeling the impact of transport energy consumption on CO₂ emission in Pakistan: Evidence from ARDL approach. Environmental Science and Pollution Research, 25, 9461-9473.

Government of Pakistan. (2019). National Renewable Energy Policy. Islamabad: Government of Pakistan.

Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. Quarterly Journal of Economics, 110(2), 353-377.

Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377.

Hussain, M., Javaid, M. I., & Drake, P. (2012). An econometric study of CO₂ emissions, energy consumption, and economic growth of Pakistan. International Journal of Energy Sector Management, 6, 518-533.

Hussain, S., Ahmad, W., Qamar, Y., & Akram, M. S. (2019). Impact of Inflation, CO2 Emissions and Foreign Investment on Economic Growth: A Case of Pakistan. Asian Development Policy Review, 7(4), 307–317. https://doi.org/10.18488/journal.107.2019.74.307.317

Iqbal, W., Ehsan, S., & Rehman, A. (2021). Exploring the effects of energy production and resources on economic progress in Pakistan. Energy Policy, 149(10), 111-122.

Jamil, F. (2013). The relationship between electricity consumption, electricity prices and GDP in Pakistan. Energy Policy, 50, 236-241.

Khan, A. R., Munir, K., & Siddique, M. (2019). Impact of globalization factors on energy consumption and emissions in Pakistan. Energy Policy, 133(5), 1-10.

Khan, I., Khan, N., Yaqub, A., & Sabir, M. (2019). An empirical investigation of the determinants of CO₂ emissions: Evidence from Pakistan. Environmental Science and Pollution Research, 26, 9099-9112.

Khan, M. K., Khan, M. I., & Rehan, M. (2020). The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan. Financial Innovation, 6, 1-15.

Khan, M. K., Teng, J., Khan, M. I., & Khan, M. O. (2019). Impact of globalization, economic factors and energy consumption on CO₂ emissions in Pakistan. The Science of the Total Environment, 688, 424-436.

Khan, M. K., Teng, J., Khan, M. I., & Khan, M. O. (2019). Impact of globalization, economic factors and energy consumption on CO₂ emissions in Pakistan. The Science of the Total Environment, 688, 424-436.

Mahmood, N., Wang, Z., & Hassan, S. (2019). Renewable energy, economic growth, human capital, and CO₂ emission: An empirical analysis. Environmental Science and Pollution Research, 1-12.

Mirza, F. M., Ahmad, M., & Majeed, M. T. (2021). Renewable energy consumption and environmental degradation: Empirical evidence from South Asia. Renewable Energy, 154, 1136-1144.

Mirza, F., & Kanwal, A. (2017). Energy consumption, carbon emissions and economic growth in Pakistan: Dynamic causality analysis. Renewable & Sustainable Energy Reviews, 72, 1233-1240.

Munir, K., & Khan, M. (2014). The impact of fossil fuel energy consumption on CO₂ emissions: Evidence from Pakistan. Renewable and Sustainable Energy Reviews, 29(5), 136-144.

Munir, S., & Khan, A. (2014). Impact of Fossil Fuel Energy Consumption on CO₂ Emissions: Evidence from Pakistan (1980-2010). The Pakistan Development Review, 53, 327-346.

Narayan, P. K. (2005). The saving and investment nexus for China: evidence from cointegration tests. Applied Economics, 37(17), 1979-1990.

Pesaran, M. H., & Shin, Y. (1999). An autoregressive distributed lag modeling approach to cointegration analysis. In S. Storm (Ed.), Econometrics and economic theory in the 20th century: The Ragnar Frisch Centennial Symposium (pp. 371-413). Cambridge: Cambridge University Press.

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.

Rehman, A., Ma, H., Ahmad, M., Ozturk, I., & Işık, C. (2021). An asymmetrical analysis to explore the dynamic impacts of CO₂ emission to renewable energy, expenditures, foreign direct investment, and trade in Pakistan. Environmental Science and Pollution Research, 28, 53520-53532.

Rehman, A., Nasir, M., & Iqbal, A. (2021). Analysis to explore the impacts of renewable energy on CO₂ emissions and energy expenditures. Environmental Progress & Sustainable Energy, 40(1), 1-12.

Shafique, D. Z., Bi, K., Steblyanskaya, A., & Hussain, S. (2023) Carbon Dioxide Emissions Reduction Efficiency and Growth Potential (A Case of Pakistan and China). BRICS Journal of Economics, 4(2), 243-263. https://doi.org/10.3897/brics-econ.4.e93805

Shahbaz, M., Hye, Q. M. A., Tiwari, A. V., & Leitao, N. C. (2013b). Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia. Renewable and Sustainable Energy Reviews, 25, 109-121.

Stern, D. I. (2004). The rise and fall of the Environmental Kuznets Curve. World Development, 32(8), 1419-1439.

Stern, D. I. (2011). The role of energy in economic growth. Annals of the New York Academy of Sciences, 1219(1), 26-51.

Tahir, Z. (2023). Impact of Electricity Power Consumption, GDP, Trade, Urban Population, Foreign Direct Investment and Renewable Energy Consumption on CO2 Emissions: Evidence from Pakistan. IRASD Journal of Energy & Environment, 4(1), 30-41. https://doi.org/10.52131/jee.2023.0401.0033

Tahir, Z. (2023). Impact of Electricity Power Consumption, GDP, Trade, Urban Population, Foreign Direct Investment and Renewable Energy Consumption on CO₂ Emissions: Evidence from Pakistan. iRASD Journal of Energy & Environment.

Waheed, R., Sarwar, S., & Bukhari, A. (2018). Forest, agriculture, and energy sector emissions: The impact of technological innovations. Environmental Progress & Sustainable Energy, 37(4), 122-131.

Zaidi, S., Danish, Hou, F., & Mirza, F. (2018). The role of renewable and non-renewable energy consumption in CO₂ emissions: A disaggregate analysis of Pakistan. Environmental Science and Pollution Research, 25, 31616-31629.




DOI: http://dx.doi.org/10.3968/13519

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Canadian Social Science

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submissionhttp://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; office@cscanada.net; ccc@cscanada.net; ccc@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture