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Mitigation pathways impact of climate change and improving sustainable development: The roles of natural resources, income, and CO2 emission

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  • Syed Tauseef Hassan
  • Enjun Xia
  • Chien-Chiang Lee

Abstract

Climate change is an obstacle in the path of sustainable economic development. One of the key findings in the economics literature is that the use of natural resources contributes to real income per capita. However, its environmental consequences should not be ignored. This paper examines the nexus among CO 2 emission, real income, and natural resources, by incorporating urbanization, and trade in Pakistan from 1971 to 2017. The Auto-Regressive Distributive Lag (ARDL) and Vector Error Correction (VECM) models are used for analyzing time-series data. The empirical findings infer that the use of natural resources accelerates the rate of CO 2 emission in Pakistan which worsens environmental quality. In addition, the Environmental Kuznets Curve (EKC) is confirmed in the presence of natural resource use. Besides, urbanization improves environmental quality through mitigating the level of CO 2 emission. Moreover, the feedback hypothesis is found between the use of natural resources and CO 2 emission. Additionally, bidirectional causality is found between urbanization and the use of natural resources. Overall, this study supports formulating new policies to overcome environmental degradation through energy-saving technologies.

Suggested Citation

  • Syed Tauseef Hassan & Enjun Xia & Chien-Chiang Lee, 2021. "Mitigation pathways impact of climate change and improving sustainable development: The roles of natural resources, income, and CO2 emission," Energy & Environment, , vol. 32(2), pages 338-363, March.
  • Handle: RePEc:sae:engenv:v:32:y:2021:i:2:p:338-363
    DOI: 10.1177/0958305X20932550
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