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Electrical Energy Dilemma and CO 2 Emission in Pakistan: Decomposing the Positive and Negative Shocks by Using an Asymmetric Technique

Author

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  • Abdul Rehman

    (College of Economics and Management, Henan Agricultural University, Zhengzhou 450002, China)

  • Laura Mariana Cismas

    (Faculty of Economics and Business Administration, West University of Timisoara, 300006 Timisoara, Romania)

  • Maria Daniela Otil

    (Faculty of Economics and Business Administration, West University of Timisoara, 300006 Timisoara, Romania)

Abstract

The key aim of the current analysis was to examine the impact of electricity production from various sources (oil, nuclear, natural gas and coal) on CO 2 emission in Pakistan by utilizing the annual data series varies from 1975–2020. The study employed the two unit root tests for the purpose of stationarity, while an asymmetric Nonlinear Autoregressive Distributed Lag (NARDL) technique was applied to expose the influence of electrical energy on CO 2 emission via long-run and short-run dynamics. Findings show that via long-run and short-run the variable electricity production from oil and coal sources has a positive impact on CO 2 emission in Pakistan via positive and negative shocks. Electricity production from nuclear sources exposed the adverse impact on CO 2 emissions. Similarly, electricity production from natural gas demonstrates the positive and adversative linkage with CO 2 emission through positive and negative shocks. There is no doubt that Pakistan is still dealing with an electricity deficit because of poor energy generation in the country, but this has contributed to an increase in CO 2 emissions. To avoid additional environmental damage, the government should pursue new and major CO 2 emission reduction measures.

Suggested Citation

  • Abdul Rehman & Laura Mariana Cismas & Maria Daniela Otil, 2022. "Electrical Energy Dilemma and CO 2 Emission in Pakistan: Decomposing the Positive and Negative Shocks by Using an Asymmetric Technique," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8957-:d:868424
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