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A New Economic Dimension to the Environmental Kuznets Curve: Estimation of Environmental Efficiency in Case of Pakistan

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Author Info

  • Shahid ALI

    ()
    (Lecturer in Economics Institute of Economic, Social and Development Studies University of Swat)

  • Maryam BIBI

    ()
    (Lecturer in Environmental Sciences Swat College of Science & Technology, Swat)

  • Fazli RABBI

    ()
    (Assistant Professor in Economics Institute of Economic, Social and Development Studies University of Swat)

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    Abstract

    This study attempts to examine the linkage between environmental degradation and economic growth in Pakistan over the period 1972-2011. The main concern of this study is to test the validity of Environmental Kuznets Curve in case of Pakistan and aims to find out the total and per capita carbon efficiency of Pakistan. Moreover, this study estimates the tipping point of environmental Kuznets curve in case of Pakistan. The study used Autoregressive Distributed Lag (ARDL) model to determine the robustness of long-run relationship among environmental degradation and economic growth. The results show that the inverted U-shaped relationship between economic growth and environmental degradation is valid in case of Pakistan. The values of total carbon efficiency for Pakistan is 47.69 and per capita carbon efficiency for Pakistan is 0.0002, which are relatively low as compare to other developing and developed countries like in the region. The Tipping Point of EKC in case of Pakistan is 338.34. This study recommends that government should keep into consideration the sustainable economic policies with environmental policies, as environmental sustainability largely based on the economic conditions and economic policies adopted by the countries.

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    Bibliographic Info

    Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

    Volume (Year): 4 (2014)
    Issue (Month): 1 (January)
    Pages: 68-79

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    Handle: RePEc:asi:aeafrj:2014:p:68-79

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    Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
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    Related research

    Keywords: Environmental Degradation; Economic; Growth Environmental Kuznets Curve; ARDL;

    References

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    1. Wagner, Martin, 2006. "The Carbon Kuznets Curve. A Cloudy Picture Emitted by Bad Econometrics?," Economics Series 197, Institute for Advanced Studies.
    2. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    3. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    4. Islam, N. & Vincent, J., 1999. "Unveiling the Income-Environment Relationship: An Exploration into the Determinants of Environmental Quality," Papers 701, Harvard - Institute for International Development.
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    15. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
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