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Investments in Energy Conservation: Policy Implications for Pakistan

Author

Listed:
  • Saba Anwar

    (Research Economist, Pakistan Institute of Development Economics, Pakistan,)

  • Hafsa Hina

    (Pakistan Institute of Development Economics, Pakistan)

  • Fahad Sultan

    (Institute of Business Studies and Leadership, Abdul Wali Khan University, Mardan, Pakistan,)

  • Muhammad Ibrahim Khan

    (Institute of Business Studies and Leadership, Abdul Wali Khan University, Mardan, Pakistan,)

  • Muzaffar Abbas

    (Department of Business Administration, Community College, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia)

  • Perfecto G. Aquino

    (Duy Tan University, Vietnam.)

Abstract

The paper investigates the impact of energy investment on economic growth for Pakistan using Solow model. The energy is introduced as factor input in the Solow growth model along with physical capital, labor and human capital and some other policy variables. The period of analysis ranges from 1970 to 2018. The Autoregressive Distributed Lag (ARDL) approach confirms that energy investment contributes positively to economic growth both in the short and the long run along with trade openness. The study provides an important policy recommendation that government should encourage the investment activities in energy sector to meet the rising energy demand which in turn stimulates economic growth.

Suggested Citation

  • Saba Anwar & Hafsa Hina & Fahad Sultan & Muhammad Ibrahim Khan & Muzaffar Abbas & Perfecto G. Aquino, 2020. "Investments in Energy Conservation: Policy Implications for Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 662-671.
    • Handle: RePEc:eco:journ2:2020-06-85
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy Investments; Economic Growth; ARDL.;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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