Industrial development, agricultural growth, urbanization and environmental Kuznets curve in Pakistan

Muhammad Anees and Ahmed Ishfaq

MPRA Paper from University Library of Munich, Germany

Abstract: The debate of environmental issues and their analysis is of vital interest for economic policies. Institutions are engaged in identifying and estimating the extent of environmental impact of determinants controllable via policy measures. Annual data from the on Carbon Dioxide emission, economic growth, consumption of energy, openness for foreign trade, urbanization, industrial growth and agriculture growth on Pakistan is used for 1971 to 2007. Augmented Vector Autoregression technique and cointegration analysis is implemented to test Granger causality. Gross domestic product significantly Granger causes emission of Carbon Dioxide and energy consumption. On the other hand emissions of CO2 affect economic growth, agriculture and industrial growth in the long run. It is also evident that energy consumption unidirectional Granger causes emission of Carbon Dioxide. Industrialization and urbanization bidirectional Granger causes each other. The results indicate the more careful industrial and energy policies to reduce emissions and control global warming.

Keywords: Pakistan; Carbon Dioxide emission; Environment; Energy Consumption; Economic Growth; Foreign Trade (search for similar items in EconPapers)
JEL-codes: A12 C22 C32 O13 (search for similar items in EconPapers)
Date: 2011-09-17
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env and nep-fdg
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