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Impact of Financial Development and Energy Consumption on CO2 Emissions: Evidence from Pakistan

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  • Hafiz Muhammad Abubakar Siddique

    (Federal Urdu University Islamabad, Pakistan)

Abstract

This study is an attempt to investigate the impact of financial development, energy consumption, trade and economic growth on CO2 emissions in Pakistan over the period of 1980 to 2015. We have used augmented dickey fuller (ADF) unit root test and auto regressive distributed lag (ARDL) bounds testing co-integration approach. The results of ARDL bound F-stat indicate that there is a long run relationship between CO2 emissions, capital, trade, energy consumption, financial development and economic growth. The long run empirical findings show that energy consumption, financial development, economic growth and trade are the increasing factors of carbon dioxide emissions.

Suggested Citation

  • Hafiz Muhammad Abubakar Siddique, 2017. "Impact of Financial Development and Energy Consumption on CO2 Emissions: Evidence from Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(2), pages 68-73, June.
    • Handle: RePEc:rfh:bbejor:v:6:y:2017:i:2:p:68-73
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    Cited by:

    1. Khurram Shehzad & Umer Zaman & Mahmood Ahmad & Xiaoxing Liu, 2022. "Asymmetric impact of information and communication technologies on environmental quality: analyzing the role of financial development and energy consumption," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1761-1780, February.

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    More about this item

    Keywords

    Financial Development; Energy Consumption; Co2 Emissions; ARDL Co-Integration Method;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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