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Nexus between export variety and carbon emissions in Pakistan: The role of FDI and technological development

Author

Listed:
  • Ihtisham ul Haq
  • Bahtiyar Mehmed
  • Sisira Kumara Naradda Gamage
  • Piratdin Allayarov
  • Dilawar Khan
  • Zeeshan Zaib Khattak

Abstract

Carbon emissions constitute a large portion of greenhouse gases that are responsible for global warming and climate change. This study examines the impact of export variety on carbon emissions along with foreign direct investment (FDI) and technological development as determinants of environmental degradation in Pakistan. Moreover, this study is conducted in the context of the environmental Kuznets curve hypothesis (EKC). This study applies dynamic ordinary least squares and error correction models for long-term and short-term estimates, respectively. The results indicate that the EKC hypothesis is valid in the long term. This implies that Pakistan’s economy reached the threshold level of income, after which an increase in income was not responsible for environmental degradation. Export variety restrains environmental degradation in the short term and is not a significant factor in the long term. Energy consumption has aggravated environmental degradation, while FDI and technological development are restraining environmental degradation. Policy measures are recommended to curb environmental degradation in Pakistan.

Suggested Citation

  • Ihtisham ul Haq & Bahtiyar Mehmed & Sisira Kumara Naradda Gamage & Piratdin Allayarov & Dilawar Khan & Zeeshan Zaib Khattak, 2022. "Nexus between export variety and carbon emissions in Pakistan: The role of FDI and technological development," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-16, January.
    • Handle: RePEc:plo:pone00:0263066
    DOI: 10.1371/journal.pone.0263066
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    References listed on IDEAS

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    2. Linyue Li & Yikai Wang, 2025. "The Impact of Coordinated Two-Way FDI Development on Carbon Emissions in Belt and Road Countries: An Empirical Analysis Based on the STIRPAT Model and GMM Estimation," Sustainability, MDPI, vol. 17(19), pages 1-25, September.
    3. Muhammad Daniyal & Kassim Tawiah & Moiz Qureshi & Mohammad Haseeb & Killian Asampana Asosega & Mustafa Kamal & Masood ur Rehman, 2023. "An autoregressive distributed lag approach for estimating the nexus between CO2 emissions and economic determinants in Pakistan," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-18, May.
    4. Mohammed Musah, 2023. "Stock market development and environmental quality in EU member countries: a dynamic heterogeneous approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11153-11187, October.

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