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The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan

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  • Muhammad Kamran Khan

    (Northeast Normal University)

  • Muhammad Imran Khan

    (Northeast Normal University)

  • Muhammad Rehan

    (Northeast Normal University)

Abstract

Developing countries are facing the problem of environmental degradation. Environmental degradation is caused by the use of non-renewable energy consumptions for economic growth but the consequences of environmental degradation cannot be ignored. This primary purpose of this study is to investigate the nexus between energy consumption, economic growth and CO2 emission in Pakistan by using annual time series data from 1965 to 2015. The estimated results of ARDL indicate that energy consumption and economic growth increase the CO2 emissions in Pakistan both in short run and long run. Based on the estimated results it is recommended that policy maker in Pakistan should adopt and promote such renewable energy sources that will help to meet the increased demand for energy by replacing old traditional energy sources such as coal, gas, and oil. Renewable energy sources are reusable that can reduce the CO2 emissions and also ensure sustainable economic development of Pakistan.

Suggested Citation

  • Muhammad Kamran Khan & Muhammad Imran Khan & Muhammad Rehan, 2020. "The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-13, December.
    • Handle: RePEc:spr:fininn:v:6:y:2020:i:1:d:10.1186_s40854-019-0162-0
    DOI: 10.1186/s40854-019-0162-0
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    Keywords

    Energy consumption; Economic growth; CO2 emissions; ARDL;
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