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Exploring the Drivers of Greenhouse Gas Emissions in Pakistan: The Role of Deforestation, Urbanization, and Economic Growth

Mudsir Ismail (), Shamim Akhtar (), Zeeshan Arshad () and Muddassar Bilal ()
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Mudsir Ismail: Scholar in Management and Administrative Sciences, Department of Business Administration, University of Sialkot, Sialkot, Pakistan
Shamim Akhtar: Department of Business Administration, University of Sialkot, Sialkot, Pakistan
Zeeshan Arshad: CESAM-Centre for Environmental and Marine Studies, Department of Environment and Planning, University of Aveiro, Aveiro, Portugal
Muddassar Bilal: Department of Economics, University of Sialkot, Sialkot, Pakistan

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 5, 359-370

Abstract: This study examines the relationship between deforestation and greenhouse gas (GHG) emissions in Pakistan, with a focus on the roles of urbanization, financial development, and economic growth. Using data from 2001 to 2023, the study employs an Autoregressive Distributed Lag (ARDL) bound testing approach to examine the short- and long-run dynamics of these variables. The results indicate that urbanization and GDP significantly increase CO2 emissions, while deforestation has a negative short-run impact with minimal long-run effects. The study emphasizes the importance of implementing effective environmental policies, including environmental taxes and market-based strategies, to reduce greenhouse gas (GHG) emissions and mitigate the ecological impacts of deforestation.

Keywords: Deforestation; CO2 Emissions; Urbanization; Financial Development; Economic Growth; ARDL (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.20376

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