Environmental Impact of Economic Growth: Empirical Evidence from Pakistan

Allah Ditta (), Muhammad Ayub (), Kashif Raza () and Salyha Shah
Additional contact information
Allah Ditta: Assistant Professor of Economics, Govt. College Township, Lahore Higher Education Department, Govt. of the Punjab, Pakistan
Muhammad Ayub: Assistant Professor, School of Economics, Bahauddin Zakariya University, Multan, Pakistan
Kashif Raza: Lecturer, Department of Economics, The Islamia University of Bahawalpur, Pakistan

iRASD Journal of Economics, 2021, vol. 3, issue 3, 305-317

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.

Keywords: Environmental degradation; Economic growth; ARDL; Carbon emissions (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.internationalrasd.org/index.php/joe/article/view/506/269 (application/pdf)
https://journals.internationalrasd.org/index.php/joe/article/view/506 (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:irdjoe:v:3:y:2021:i:3:p:305-317

DOI: 10.52131/joe.2021.0303.0046

Access Statistics for this article

More articles in iRASD Journal of Economics from International Research Alliance for Sustainable Development (iRASD)
Bibliographic data for series maintained by Dr. Muhammad Abrar ul Haq ().