Analysis of Green Energy on Environmental Sustainability Framework in Pakistan

Raja Kashif, Khalid Mahmood Mughal and Durdana Qaiser Gillani

Journal of Economic Impact, 2025, vol. 7, issue 3, 191-201

Abstract: The use of fossil fuels and the intense industrialization of Pakistan have led to the acceleration of environmental degradation, which increases the cost of health and climate susceptibility. The shift to renewable energy source, technological achievements, and evidence-based policy are necessary to ensure economic stability, forestry protection, and preserve human health. The paper examines the correlation between green energy and sustainability in Pakistan between the years 1990 and 2022 with the help of the ARDL estimation. The explanatory variables are the consumption of renewable energy, industrial output, the importation of technology, the involvement of labor, research and development, tourism, urbanization and non-renewable energy consumption. The dependent variables will be environmental degradation, growth in economy and population health. According to the results of the Model 1 (Environmental Sustainability Model), renewable energy, foreign direct investment, tourism, and technological innovation decrease the environmental degradation, and fossil fuel use and industrial activity increase it. According to Model 2 (Economic Sustainability Model), renewable energy, industrial production, investment, labor force participation, innovation, and tourism are the economic growth enablers, but non-renewable energy also plays a role in the short run. Model 3 (Social Sustainability Model) also shows that population health is enhanced by renewable energy, tourism, labor engagement, and innovation, and it is adversely affected by fossil fuels, investment, and industrial activity. The findings highlight why Pakistan needs to increase its solar, wind, and hydropower. The study is based on the 3Ps theory (People, Planet, Profit) and emphasizes that renewable energy could be adopted to improve the social well-being, decrease ecological stress, and stimulate the economic development in the long term.

Keywords: Green energy; Sustainability; Technological innovation; 3Ps theory (search for similar items in EconPapers)
Date: 2025
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