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Exploring the Impact of Economic Structure on Carbon Emissions: A Case Study of Pakistan

Author

Listed:
  • Muhammad Hasnain Khalid

    (Department of Economics, Kohat University of Science & Technology, Kohat 26000, Pakistan)

  • Ihtisham ul Haq

    (Department of Economics, Kohat University of Science & Technology, Kohat 26000, Pakistan)

  • Dilawar Khan

    (Department of Economics, Kohat University of Science & Technology, Kohat 26000, Pakistan)

  • Khurram Abbas

    (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)

Abstract

Climate change has marked its effects on Pakistan in form of different problems like floods, droughts, change in crop patterns, heat waves, changes in weather conditions and health issues. One of the reason of climate change is environmental degradation that s why several studies are conducted in case of Pakistan to examine the factors of environmental degradation. This study also explores the factors of environmental degradation for Pakistan and is unique study as so for none of the empirical studies conducted in context of Pakistan analyzed the effect of economic structure on environmental degradation. So, the prime objective of this study is to explore the impact of economic structure on environmental degradation. The economic structure for Pakistan s economy is being captured through agriculture, industrial and service sector over the years. As energy and trade openness grab attention from researchers in examining factors of environmental degradation thus; energy consumption and trade openness are introduced in the study model as control variables. Once order of integration of time series data is determined, long run relationship is found through bound testing approach. Agricultural and service sector are found to have negative impact on environmental degradation but; service sector has insignificant effect on environmental degradation. The industrial sector is aggravating environmental degradation in long run but; is abstaining environmental degradation in short run. Hence; the different effect of industrial sector on environmental degradation in long run and short run is providing the opportunity for policy makers to come up with different policy measure for long run and short run. Energy is found to have positive and significant effect on environmental degradation in both time spans whereas trade openness has negative and significant effect on environmental degradation in long run. Policy implications are suggested on basis of findings of this study for Pakistan.

Suggested Citation

  • Muhammad Hasnain Khalid & Ihtisham ul Haq & Dilawar Khan & Khurram Abbas, 2022. "Exploring the Impact of Economic Structure on Carbon Emissions: A Case Study of Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 425-431, May.
    • Handle: RePEc:eco:journ2:2022-03-46
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    References listed on IDEAS

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    Cited by:

    1. Nada Amer Abdulhafedh Al-Kubati & Zulkefly Abdul Karim & Norlin Khalid & M. Kabir Hassan, 2022. "The Impact of Sub-Sector of Economic Activity and Financial Development on Environmental Degradation: New Evidence Using Dynamic Heterogeneous Panel," Mathematics, MDPI, vol. 10(23), pages 1-23, November.

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    More about this item

    Keywords

    Economic structure; energy; Trade openness; environmental degradation; Time Series Analysis;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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