Exploring the Nexus between CO2 Emissions, Trade, and Sustainable Economic Growth: A Novel NARDL Approach

Muhammad Mohsin, Mad Nasir Shamsudin, Khalid Mahsan Alshammary and Muddassar Sarfraz
Additional contact information
Muhammad Mohsin: Putra Business School, 43400 UPM Serdang, Selangor, Malaysia
Mad Nasir Shamsudin: Putra Business School, 43400 UPM Serdang, Selangor, Malaysia
Khalid Mahsan Alshammary: School of Distance Education, Universiti Sains Malaysia,
Muddassar Sarfraz: School of Management, Zhejiang Shuren University, Hangzhou, China

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 2, 357-366

Abstract: This study investigates the nexus between CO2 emission, trade, GDP, and tourism in Pakistan during 1990-2019. We examined the asymmetric relationship between CO2 emission, international trade, GDP, and international tourism number of arrivals in Pakistan. Data Stationarity has been tested using the Augmented Dicky Fuller (ADF), Kwiatkowski-Phillips-Schmidt-Shin (KPSS), and Phillips-Perron (PP) tests for unit roots. We used the NARDL technique and Granger Causality to estimate the relationship between these environmental variables. The ARDL technique can potentially explore the dynamic nexus between CO2 emission, tourism, GDP, and trade. Our findings suggest a dynamic relationship between tourism, trade, CO2 emission, and GDP from Pakistan’s perspective. The outcomes reveal that negative and positive shocks to trade, GDP, and tourism affect CO2emissions in the short and long term. The Granger Causality findings also determined that causality is directed from Tourism toward CO2 emission, while unidirectional causality was found between CO2 emission and tourism. In this study, the graphs of the CUSUM and CUSUMQ determined the functional stability of the established relationship. This indicates that this model is a suitable and valuable strategy tool. The finding benefits macro-level policymakers and will provide important insight for the relevant stakeholders.

Keywords: CO2 Emission; International Tourism Number of Arrival; Gross Domestic Product; Trade; Non-Linear Autoregressive Distributed Lags; Pakistan (search for similar items in EconPapers)
JEL-codes: C58 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://econjournals.com/index.php/ijeep/article/download/15020/7774/36360 (application/pdf)
https://econjournals.com/index.php/ijeep/article/view/15020/7774 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-02-36

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().