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Economic Growth, Energy and Environmental Degradation Nexus: A Case Study in Pakistan

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  • Rabia Nawaz
  • Muhammad Azam
  • Hanzala Zulfiqar

Abstract

This study estimated the growth, energy and environmental degradation nexus in Pakistan by using time series data. The data have been taken from the World Bank for the year 1971 to 2011. The data analysis was done by using the approach of co-integration (ARDL bound test) to confirm the effective long-term positive relationship among carbon dioxide emissions, per capita income growth and the per capita income gap to monitor the trend of the Environmental Kuznets Curve in Pakistan. The results of the study showed that there is no evidence of a serial correlation between the variables in the discussion, but they have a long-term association. Energy usage and per capita real income, has a positive relationship with CO2 emissions. The study has concluded that there is an evidence of inverted U shaped EKC in Pakistan and this relationship varies with different types of pollutants and geographical regions. Initially, income has a positive relationship with CO2 emission but after the turning point, both have a negative relationship.

Suggested Citation

  • Rabia Nawaz & Muhammad Azam & Hanzala Zulfiqar, 2020. "Economic Growth, Energy and Environmental Degradation Nexus: A Case Study in Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 2(1), pages 13-23.
    • Handle: RePEc:adx:journl:v:2:y:2020:i:1:p:13-23
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    More about this item

    Keywords

    Environmental Kuznets Curve; CO2 emission; environmental degradation; Pakistan;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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