Causality between Environment and Financial Development in case of Pakistan: A Time Series Analysis

Ayesha Amjad (), Ayesha Manzoor () and Um-I-Kulsoom ()
Additional contact information
Ayesha Amjad: Department of Management Sciences, COMSATS University Islamabad, Lahore Campus, Pakistan.
Ayesha Manzoor: Assistant Professor, Department of Psychology, University of Central Punjab, Lahore Campus, Pakistan.
Um-I-Kulsoom: Department of Economics, The Islamia University of Bahawalpur, Pakistan.

iRASD Journal of Energy and Environment, 2020, vol. 1, issue 1, 49-60

Abstract: Climate change is now widely regarded as one of the greatest issues of our era. As a result, it is critical to study the impact of various macroeconomic variables on the environment. The purpose of this research is to look at the link between financial development and environmental (CO2 emissions) in Pakistan from 1980 to 2014. The Auto Regressive Distributed Log (ARDL) technique was employed to track both long-term and short-term association between variables in this investigation. Granger causal testing is used to examine the causal relationship. Study results suggest that there is a unidirectional causality between CO2 and the financial development Index. However, the environment (CO2 emissions) in the long run will depend on the financial development that the financial development index (domestic credit to private sector aggregate market capitalization, and FDI) has in Pakistan. In the second model, the environment (energy consumption) also depends on financial development.

Keywords: CO2 emissions; Financial development; Population; Trade; ARDL; Pakistan (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.internationalrasd.org/index.php/jee/article/view/504/240 (application/pdf)
https://journals.internationalrasd.org/index.php/jee/article/view/504 (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:ani:irdjee:v:1:y:2020:i:1:p:49-60

DOI: 10.52131/jee.2020.0201.0005

Access Statistics for this article

More articles in iRASD Journal of Energy and Environment from International Research Alliance for Sustainable Development (iRASD)
Bibliographic data for series maintained by Dr. Muhammad Atif Nawaz ().