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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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  • Shahid ALI
  • Maryam BIBI
  • Fazli RABBI

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.

Suggested Citation

  • Shahid ALI & Maryam BIBI & Fazli RABBI, 2014. "A New Economic Dimension to the Environmental Kuznets Curve: Estimation of Environmental Efficiency in Case of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 68-79.
    • Handle: RePEc:asi:aeafrj:v:4:y:2014:i:1:p:68-79:id:1143
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    Cited by:

    1. Azam, Muhammad & Khan, Abdul Qayyum, 2016. "Testing the Environmental Kuznets Curve hypothesis: A comparative empirical study for low, lower middle, upper middle and high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 556-567.
    2. Yongming Huang & Lian Xue & Zeeshan Khan, 2021. "What abates carbon emissions in China: Examining the impact of renewable energy and green investment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 823-834, September.
    3. Liu, Jiayu & Lu, Shichang, 2023. "Do natural resources ensure access to sustainable renewable energy in developing economies? The role of mineral resources in a resources-energy novel setting," Resources Policy, Elsevier, vol. 85(PA).
    4. Teng, Yin-Pei, 2023. "Natural resources extraction and sustainable development: Linear and non-linear resources curse hypothesis perspective for high income countries," Resources Policy, Elsevier, vol. 83(C).
    5. Pruethsan Sutthichaimethee & Sthianrapab Naluang, 2019. "The Efficiency of the Sustainable Development Policy for Energy Consumption under Environmental Law in Thailand: Adapting the SEM-VARIMAX Model," Energies, MDPI, vol. 12(16), pages 1-21, August.
    6. Cai, Xiaotong & Li, Kun & Wang, Wenhua & Lu, Yuxin & Wang, Rui, 2023. "The role of resource rent in shaping CO2 emissions in BRICS countries: A panel data approach," Resources Policy, Elsevier, vol. 85(PB).
    7. Dinh Cong Hoang & Dinh Cong Tuan, 2023. "Evaluating the Role of Green Financing, International Trade and Alternative Energies on Environmental Performance in Case of Chinese Provinces: Application of Quantile Regression Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 500-508, March.
    8. Lei, Wei & Yang, Jiaxin, 2022. "Does economic, political, and financial risk cause volatility in natural resources? Comparative study of China and Brazil," Resources Policy, Elsevier, vol. 77(C).
    9. Bright O. Osu & Chidi U. Okonkwo & Rosemary N.Ujumadu, 2016. "The Relationship between GDP and Co2 Emission in Nigeria Using the Least Square Polynomials," Academic Journal of Applied Mathematical Sciences, Academic Research Publishing Group, vol. 2(6), pages 51-55, 06-2016.
    10. Liu, Lili, 2023. "Natural resources extraction and global COP26 target: An overview of USA economy," Resources Policy, Elsevier, vol. 82(C).
    11. Ahmad Zomorrodi & Xiaoyan Zhou, 2016. "Role of EKC and PHH in Determining Environment Quality and their Relation to Economic Growth of a Country," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(2), pages 139-144.

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