IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v207y2020ics0360544220313517.html
   My bibliography  Save this article

Coal and economic development in Pakistan: A necessity of energy source

Author

Listed:
  • Lin, Boqiang
  • Raza, Muhammad Yousaf

Abstract

In this research, the logarithmic mean Divisia index (LMDI) and the Input-Output (I–O) models were used to explore the determinants of coal consumption change during 1999–2018 in Pakistan. Some novel factors industrial structure, energy intensity (EI), economic scale, energy mix, and personified coal consumption were chosen and added to the LMDI and I–O models. The aim is to estimate the factors’ effects of various sectors that might provide a new way for policy-makers. The results show: (1) the variations in the driving factors industrial, cement, Brick-kilns, and power sectors are growing. (2) The industrial structure effect increasing coal consumption significantly, while energy mix and EI are growing energy efficiency from 2014 to 2018. The economic scale effects played a major role in coal consumption during 1999–2018, while EI, industrial, and energy mix have mixed effects. (3) The economic scale is the only factor which is stable and increasing Pakistan’s coal consumption. (4) From the LMDI, the economic scale effect is stable while I–O expresses that EI, energy mix and a trend in the industrial structure effects are key motives in boosting in coal consumption. It is suggested coal reserve of 185.175 billion tons can significantly improve social, economic, and energy in Pakistan.

Suggested Citation

  • Lin, Boqiang & Raza, Muhammad Yousaf, 2020. "Coal and economic development in Pakistan: A necessity of energy source," Energy, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:energy:v:207:y:2020:i:c:s0360544220313517
    DOI: 10.1016/j.energy.2020.118244
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544220313517
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.118244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    2. Ang, B.W. & Su, Bin, 2016. "Carbon emission intensity in electricity production: A global analysis," Energy Policy, Elsevier, vol. 94(C), pages 56-63.
    3. Wang, Ke & Wei, Yi-Ming, 2016. "Sources of energy productivity change in China during 1997–2012: A decomposition analysis based on the Luenberger productivity indicator," Energy Economics, Elsevier, vol. 54(C), pages 50-59.
    4. Shahbaz, Muhammad & Lean, Hooi Hooi & Farooq, Abdul, 2013. "Natural gas consumption and economic growth in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 87-94.
    5. Khalid Mushtaq & Faisal Abbas & Abedullah & Abdul Ghafoor, 2007. "Energy Use for Economic Growth: Cointegration and Causality Analysis from the Agriculture Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 1065-1073.
    6. Lin, Boqiang & Raza, Muhammad Yousaf, 2020. "Analysis of energy security indicators and CO2 emissions. A case from a developing economy," Energy, Elsevier, vol. 200(C).
    7. Vaninsky, Alexander, 2006. "Efficiency of electric power generation in the United States: Analysis and forecast based on data envelopment analysis," Energy Economics, Elsevier, vol. 28(3), pages 326-338, May.
    8. Llop, Maria, 2020. "Energy import costs in a flexible input-output price model," Resource and Energy Economics, Elsevier, vol. 59(C).
    9. Ur Rehman, Syed Aziz & Cai, Yanpeng & Mirjat, Nayyar Hussain & Walasai, Gordhan Das & Nafees, Mohammad, 2019. "Energy-environment-economy nexus in Pakistan: Lessons from a PAK-TIMES model," Energy Policy, Elsevier, vol. 126(C), pages 200-211.
    10. Malla, Sunil, 2009. "CO2 emissions from electricity generation in seven Asia-Pacific and North American countries: A decomposition analysis," Energy Policy, Elsevier, vol. 37(1), pages 1-9, January.
    11. Tang, Xu & Zhang, Baosheng & Feng, Lianyong & Snowden, Simon & Höök, Mikael, 2012. "Net oil exports embodied in China's international trade: An input–output analysis," Energy, Elsevier, vol. 48(1), pages 464-471.
    12. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    13. Zhang, Wei & Li, Ke & Zhou, Dequn & Zhang, Wenrui & Gao, Hui, 2016. "Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method," Energy Policy, Elsevier, vol. 92(C), pages 369-381.
    14. Jeong, Kyonghwa & Kim, Suyi, 2013. "LMDI decomposition analysis of greenhouse gas emissions in the Korean manufacturing sector," Energy Policy, Elsevier, vol. 62(C), pages 1245-1253.
    15. Liu, Hongtao & Xi, Youmin & Guo, Ju'e & Li, Xia, 2010. "Energy embodied in the international trade of China: An energy input-output analysis," Energy Policy, Elsevier, vol. 38(8), pages 3957-3964, August.
    16. Anwar, Javed, 2016. "Analysis of energy security, environmental emission and fuel import costs under energy import reduction targets: A case of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1065-1078.
    17. Xu, Tang & Baosheng, Zhang & Lianyong, Feng & Masri, Marwan & Honarvar, Afshin, 2011. "Economic impacts and challenges of China’s petroleum industry: An input–output analysis," Energy, Elsevier, vol. 36(5), pages 2905-2911.
    18. Wang, Qiang & Li, Rongrong, 2016. "Journey to burning half of global coal: Trajectory and drivers of China׳s coal use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 341-346.
    19. Wachsmann, Ulrike & Wood, Richard & Lenzen, Manfred & Schaeffer, Roberto, 2009. "Structural decomposition of energy use in Brazil from 1970 to 1996," Applied Energy, Elsevier, vol. 86(4), pages 578-587, April.
    20. Chang, Yih F & Lin, Sue J, 1998. "Structural decomposition of industrial CO2 emission in Taiwan: an input-output approach," Energy Policy, Elsevier, vol. 26(1), pages 5-12, January.
    21. Xue-Ting Jiang & Rongrong Li, 2017. "Decoupling and Decomposition Analysis of Carbon Emissions from Electric Output in the United States," Sustainability, MDPI, vol. 9(6), pages 1-13, May.
    22. Li, Aijun & Hu, Mingming & Wang, Mingjian & Cao, Yinxue, 2016. "Energy consumption and CO2 emissions in Eastern and Central China: A temporal and a cross-regional decomposition analysis," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 284-297.
    23. Fernández González, P. & Landajo, M. & Presno, M.J., 2013. "The Divisia real energy intensity indices: Evolution and attribution of percent changes in 20 European countries from 1995 to 2010," Energy, Elsevier, vol. 58(C), pages 340-349.
    24. Muhammad Shahbaz & Mete Feridun, 2012. "Electricity consumption and economic growth empirical evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1583-1599, August.
    25. Yin, Sudong & Tao, Xiuxiang & Shi, Kaiyi & Tan, Zhongchao, 2009. "Biosolubilisation of Chinese lignite," Energy, Elsevier, vol. 34(6), pages 775-781.
    26. Satti, Saqlain Latif & Hassan, Muhammad Shahid & Mahmood, Haider & Shahbaz, Muhammad, 2014. "Coal consumption: An alternate energy resource to fuel economic growth in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 282-287.
    27. Wang, Wenwen & Liu, Xiao & Zhang, Ming & Song, Xuefeng, 2014. "Using a new generalized LMDI (logarithmic mean Divisia index) method to analyze China's energy consumption," Energy, Elsevier, vol. 67(C), pages 617-622.
    28. Tang, Chor Foon & Shahbaz, Muhammad, 2013. "Sectoral analysis of the causal relationship between electricity consumption and real output in Pakistan," Energy Policy, Elsevier, vol. 60(C), pages 885-891.
    29. AkbostancI, Elif & Tunç, Gül Ipek & Türüt-AsIk, Serap, 2011. "CO2 emissions of Turkish manufacturing industry: A decomposition analysis," Applied Energy, Elsevier, vol. 88(6), pages 2273-2278, June.
    30. Chen, Jiandong & Xu, Chong & Cui, Lianbiao & Huang, Shuo & Song, Malin, 2019. "Driving factors of CO2 emissions and inequality characteristics in China: A combined decomposition approach," Energy Economics, Elsevier, vol. 78(C), pages 589-597.
    31. Moutinho, Victor & Moreira, António Carrizo & Silva, Pedro Miguel, 2015. "The driving forces of change in energy-related CO2 emissions in Eastern, Western, Northern and Southern Europe: The LMDI approach to decomposition analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1485-1499.
    32. Ang, B. W. & Lee, S. Y., 1994. "Decomposition of industrial energy consumption : Some methodological and application issues," Energy Economics, Elsevier, vol. 16(2), pages 83-92, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nafees Ali & Xiaodong Fu & Umar Ashraf & Jian Chen & Hung Vo Thanh & Aqsa Anees & Muhammad Shahid Riaz & Misbah Fida & Muhammad Afaq Hussain & Sadam Hussain & Wakeel Hussain & Awais Ahmed, 2022. "Remote Sensing for Surface Coal Mining and Reclamation Monitoring in the Central Salt Range, Punjab, Pakistan," Sustainability, MDPI, vol. 14(16), pages 1-26, August.
    2. Zain Bashir & Muhammad Amjad & Syed Farhan Raza & Shafiq Ahmad & Mali Abdollahian & Muhammad Farooq, 2023. "Investigating the Impact of Shifting the Brick Kiln Industry from Conventional to Zigzag Technology for a Sustainable Environment," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    3. Yousaf Raza, Muhammad & Lin, Boqiang, 2021. "Oil for Pakistan: What are the main factors affecting the oil import?," Energy, Elsevier, vol. 237(C).
    4. Lin, Boqiang & Raza, Muhammad Yousaf, 2021. "Analysis of electricity consumption in Pakistan using index decomposition and decoupling approach," Energy, Elsevier, vol. 214(C).
    5. Kanwal, Saira & Mehran, Muhammad Taqi & Hassan, Muhammad & Anwar, Mustafa & Naqvi, Salman Raza & Khoja, Asif Hussain, 2022. "An integrated future approach for the energy security of Pakistan: Replacement of fossil fuels with syngas for better environment and socio-economic development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    6. Jiang, Wei & Sun, Yifei, 2023. "Which is the more important factor of carbon emission, coal consumption or industrial structure?," Energy Policy, Elsevier, vol. 176(C).
    7. Raza, Muhammad Yousaf & Lin, Boqiang, 2023. "Future outlook and influencing factors analysis of natural gas consumption in Bangladesh: An economic and policy perspectives," Energy Policy, Elsevier, vol. 173(C).
    8. Shaonan Shan & Yulong Li & Zicheng Zhang & Wei Zhu & Tingting Zhang, 2023. "Identification of Key Carbon Emission Industries and Emission Reduction Control Based on Complex Network of Embodied Carbon Emission Transfers: The Case of Hei-Ji-Liao, China," IJERPH, MDPI, vol. 20(3), pages 1-28, January.
    9. Cao, Xin & Zhang, Zechen & Qian, Yuan & Wen, Zongguo, 2024. "The spatial pattern, driving factors and evolutionary trend of energy cooperation and consumption in the “Belt and Road Initiative” countries," Energy, Elsevier, vol. 306(C).
    10. Tusawar Iftikhar Ahmad & Furrukh Bashir & Muhammad Ali Zafar, 2021. "Gas- and Coal-based Power Generation to Spur Economic Growth in Pakistan?," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(1), pages 12-23, June.
    11. Yousaf Raza, Muhammad & Lin, Boqiang, 2022. "Natural gas consumption, energy efficiency and low carbon transition in Pakistan," Energy, Elsevier, vol. 240(C).
    12. Shafqut Ullah & Muhammad Khan & Seong-Min Yoon, 2021. "Measuring Energy Poverty and Its Impact on Economic Growth in Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    13. Lin, Boqiang & Wang, Chonghao, 2021. "Impacts of coal prices on the performance of Chinese financial institutions: Does electricity consumption matter?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 884-896.
    14. Muhammad Yousaf Raza & Songlin Tang, 2022. "Inter-Fuel Substitution, Technical Change, and Carbon Mitigation Potential in Pakistan: Perspectives of Environmental Analysis," Energies, MDPI, vol. 15(22), pages 1-20, November.
    15. Raza, Muhammad Yousaf & Lin, Boqiang, 2022. "Energy efficiency and factor productivity in Pakistan: Policy perspectives," Energy, Elsevier, vol. 247(C).
    16. Rehman, Obaid ur & Ali, Yousaf & Sabir, Muhammad, 2022. "Risk assessment and mitigation for electric power sectors: A developing country's perspective," International Journal of Critical Infrastructure Protection, Elsevier, vol. 36(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Miao & Feng, Chao, 2018. "Decomposing the change in energy consumption in China's nonferrous metal industry: An empirical analysis based on the LMDI method," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2652-2663.
    2. Lin, Boqiang & Raza, Muhammad Yousaf, 2021. "Analysis of electricity consumption in Pakistan using index decomposition and decoupling approach," Energy, Elsevier, vol. 214(C).
    3. Linwei Ma & Chinhao Chong & Xi Zhang & Pei Liu & Weiqi Li & Zheng Li & Weidou Ni, 2018. "LMDI Decomposition of Energy-Related CO 2 Emissions Based on Energy and CO 2 Allocation Sankey Diagrams: The Method and an Application to China," Sustainability, MDPI, vol. 10(2), pages 1-37, January.
    4. Wang, Miao & Feng, Chao, 2017. "Decomposition of energy-related CO2 emissions in China: An empirical analysis based on provincial panel data of three sectors," Applied Energy, Elsevier, vol. 190(C), pages 772-787.
    5. Liang, Wei & Gan, Ting & Zhang, Wei, 2019. "Dynamic evolution of characteristics and decomposition of factors influencing industrial carbon dioxide emissions in China: 1991–2015," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 93-106.
    6. Raza, Muhammad Yousaf & Wu, Rongxin & Lin, Boqiang, 2023. "A decoupling process of Pakistan's agriculture sector: Insights from energy and economic perspectives," Energy, Elsevier, vol. 263(PC).
    7. Vaninsky, Alexander, 2014. "Factorial decomposition of CO2 emissions: A generalized Divisia index approach," Energy Economics, Elsevier, vol. 45(C), pages 389-400.
    8. Román-Collado, Rocío & Cansino, José M. & Botia, Camilo, 2018. "How far is Colombia from decoupling? Two-level decomposition analysis of energy consumption changes," Energy, Elsevier, vol. 148(C), pages 687-700.
    9. Bingquan Liu & Yue Wang & Xuran Chang & Boyang Nie & Lingqi Meng & Yongqing Li, 2022. "Does Land Urbanization Affect the Catch-Up Effect of Carbon Emissions Reduction in China’s Logistics?," Land, MDPI, vol. 11(9), pages 1-18, September.
    10. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    11. Cansino, José M. & Sánchez-Braza, Antonio & Rodríguez-Arévalo, María L., 2015. "Driving forces of Spain׳s CO2 emissions: A LMDI decomposition approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 749-759.
    12. Wang, Miao & Feng, Chao, 2017. "Analysis of energy-related CO2 emissions in China’s mining industry: Evidence and policy implications," Resources Policy, Elsevier, vol. 53(C), pages 77-87.
    13. Xue-Ting Jiang & Min Su & Rongrong Li, 2018. "Decomposition Analysis in Electricity Sector Output from Carbon Emissions in China," Sustainability, MDPI, vol. 10(9), pages 1-18, September.
    14. Román, Rocío & Cansino, José M. & Rodas, José A., 2018. "Analysis of the main drivers of CO2 emissions changes in Colombia (1990–2012) and its political implications," Renewable Energy, Elsevier, vol. 116(PA), pages 402-411.
    15. He Li & Kevin Lo & Mark Wang & Pingyu Zhang & Longyi Xue, 2016. "Industrial Energy Consumption in Northeast China under the Revitalisation Strategy: A Decomposition and Policy Analysis," Energies, MDPI, vol. 9(7), pages 1-13, July.
    16. Harmsen, Robert & Crijns-Graus, Wina, 2021. "Unhiding the role of CHP in power & heat sector decomposition analyses," Energy Policy, Elsevier, vol. 152(C).
    17. Edyta Sidorczuk-Pietraszko, 2020. "Spatial Differences in Carbon Intensity in Polish Households," Energies, MDPI, vol. 13(12), pages 1-21, June.
    18. Karmellos, M. & Kosmadakis, V. & Dimas, P. & Tsakanikas, A. & Fylaktos, N. & Taliotis, C. & Zachariadis, T., 2021. "A decomposition and decoupling analysis of carbon dioxide emissions from electricity generation: Evidence from the EU-27 and the UK," Energy, Elsevier, vol. 231(C).
    19. Yousaf Raza, Muhammad & Lin, Boqiang, 2023. "Development trend of Pakistan's natural gas consumption: A sectorial decomposition analysis," Energy, Elsevier, vol. 278(PA).
    20. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2012. "Application of the Structural Decomposition Analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1135-1145.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:207:y:2020:i:c:s0360544220313517. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.