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

  • 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)

Registered author(s):

    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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    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
    Contact details of provider: Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
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    1. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
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