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Pakistan's energy sector—from a power outage to sustainable supply. Examining the role of China–Pakistan economic corridor

Author

Listed:
  • Wenqi Duan
  • Adnan Khurshid
  • Naila Nazir
  • Adrian Cantemir Calin

Abstract

The industrial development alongside inadequate planning in the energy sector put demand-side pressure on Pakistan's energy demand. Similarly, the excessive dependency on fossil fuels has an ecological footprint. Moreover, the abuse of energy tariff subsidies and deficits had a detrimental effect on department earnings, limiting the sector's emergence and intensifying its crisis. This research examines the electric demand and supply imbalance in the context of the China–Pakistan economic corridor investments using the system dynamics modeling approach, highlights the renewable resources, and discusses the hurdles in the way of green conversion. Moreover, the study forecasts the production capacity, electric demand, and supply up to 2040. The results show that China–Pakistan economic corridor investments will uplift the production capacity up to 12.9%, whereas the average production will reach 15.8%, variables that were 5% and 4.8% before China–Pakistan economic corridor. As a result, the energy sector will be able to meet the energy demand after 2021. However, the current investment in the renewable industry will not help in achieving policy targets. The study provides targeted implications to overcome potential barriers to the green path.

Suggested Citation

  • Wenqi Duan & Adnan Khurshid & Naila Nazir & Adrian Cantemir Calin, 2022. "Pakistan's energy sector—from a power outage to sustainable supply. Examining the role of China–Pakistan economic corridor," Energy & Environment, , vol. 33(8), pages 1636-1662, December.
    • Handle: RePEc:sae:engenv:v:33:y:2022:i:8:p:1636-1662
    DOI: 10.1177/0958305X211044785
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    References listed on IDEAS

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