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Modeling Energy Consumption, Carbon Emission and Economic Growth: Empirical Analysis for Pakistan

Author

Listed:
  • Amjad Ali

    (Department of Economics, Karakoram International University, Gilgit Baltistan, Pakistan,)

  • Sabila Khatoon

    (Department of Economics, Karakoram International University, Gilgit Baltistan, Pakistan,)

  • Muhammad Ather

    (Department of Economics, Karakoram International University, Gilgit Baltistan, Pakistan,)

  • Naila Akhtar

    (Department of Economics, Karakoram International University, Gilgit Baltistan, Pakistan.)

Abstract

This study examines the short run and long relationship among carbon emission, energy consumption and economic growth in case of Pakistan for the time period 1980-2012. For this purpose we have employed Johansen co-integration approach and the results reveal that there exists long run relationship among energy, growth and environment (E-E-E) in Pakistan. It is found that the environmental Kuznets curve hypothesis is valid in long run but not in short run. Also there exists unidirectional causality between energy consumption to energy emission in Pakistan. Unidirectional causality also found between financial development and economic growth running from financial development to economic growth.

Suggested Citation

  • Amjad Ali & Sabila Khatoon & Muhammad Ather & Naila Akhtar, 2015. "Modeling Energy Consumption, Carbon Emission and Economic Growth: Empirical Analysis for Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 624-630.
    • Handle: RePEc:eco:journ2:2015-02-27
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    References listed on IDEAS

    as
    1. Jahangir Alam, Mohammad & Ara Begum, Ismat & Buysse, Jeroen & Van Huylenbroeck, Guido, 2012. "Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis," Energy Policy, Elsevier, vol. 45(C), pages 217-225.
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    Cited by:

    1. George N. Botzoris & Athanasios T. Galanis & Vassilios A. Profillidis & Nikolaos E. Eliou, 2015. "Coupling and Decoupling Relationships between Energy Consumption and Air Pollution from the Transport Sector and the Economic Activity," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 949-954.
    2. Sinha, Avik & Shahbaz, Muhammad & Sengupta, Tuhin, 2018. "Renewable Energy Policies and Contradictions in Causality: A case of Next 11 Countries," MPRA Paper 87542, University Library of Munich, Germany, revised 17 Jun 2018.
    3. Mara Madaleno & Victor Moutinho, 2018. "Effects decomposition: separation of carbon emissions decoupling and decoupling effort in aggregated EU-15," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 181-198, December.
    4. Fang, Zheng & Chang, Youngho, 2016. "Energy, human capital and economic growth in Asia Pacific countries — Evidence from a panel cointegration and causality analysis," Energy Economics, Elsevier, vol. 56(C), pages 177-184.
    5. Yacouba Telly & Xuezhi Liu & Tadagbe Roger Sylvanus Gbenou, 2023. "Investigating the Growth Effect of Carbon-Intensive Economic Activities on Economic Growth: Evidence from Angola," Energies, MDPI, vol. 16(8), pages 1-18, April.
    6. 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.
    7. Ogede Jimoh S. & Tiamiyu Hammed O., 2023. "Does Financial Inclusion Moderate CO2 Emissions in Sub-Saharan Africa? Evidence From Panel Data Analysis," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(3), pages 21-36, September.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Energy; Growth; Co-integration; Pakistan;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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