Environmental Impact of Economic Growth: Empirical Evidence from Pakistan
Journal: IRASD Journal of Economics (Vol.3, No. 3)Publication Date: 2021-12-31
Authors : Allah Ditta; Muahammad Ayub; Kashif Raza; Salyha Zulfiqar Ali Shah;
Page : 305 – -305 –
Keywords : ;
Abstract
Environmental degradation as a consequence of modern technological change is still an unresolved global issue. As countries grow, the cost of this progress has to be born in the form of a rise in carbon emissions. In Pakistan, energy consumption has increased from 34 Million MTOE in 1992 to 98 MTOE in 2019 due to oil and gas-based production. Likewise, the average temperature has risen during the last 50 years in Pakistan. Based on IPAT and Climate change models, this study estimates the two equations model to analyze the impact of economic growth, foreign direct investment, population density and population in urban agglomeration on carbon emissions by using ARDL bound testing methodology. The co-integration relationship was found in both stages with consistency. This study proved the Environmental Kuznets curve (EKC) theory in the case of Pakistan. The more insightful finding is that the large bulge area of the curve between carbon emissions and economic growth highlights that the negative impact of today’s economic growth on the environment will remain for a much longer period in the future. It is also found that carbon emissions are responsible for increasing average temperature resulting in a climatic change in Pakistan. These empirical results indicate that there is a dire need to revisit the growth strategy to achieve sustained economic growth.
Other Latest Articles
- The Effects of Green Financial Development on Economic Growth in Pakistan
- Investigating the Link Between Macroeconomic Factors and Income Inequality of Asian Countries
- Impact of Tourism Growth and FDI on Economic Growth: Evidence from South Asian Countries
- Effectiveness of Globalization and Human Capital on Market & Net Income Inequality in NEXT11 Countries: A Panel Data Analysis
- Risk Management in the Malaysian Build Operate Transfer Projects
Last modified: 2022-06-15 18:29:25