IDEAS home Printed from https://ideas.repec.org/a/sae/prodev/v15y2015i1p73-86.html
   My bibliography  Save this article

Climate change: A threat to the economic growth of Pakistan

Author

Listed:
  • Naeem Akram

    (Ministry of Economic Affairs, Islamabad, Pakistan)

  • Abdul Hamid

    (Office of the Auditor General of Pakistan, Islamabad, Pakistan)

Abstract

Pakistan is recognized as a country with low income along with poor human development indicators. Although its contribution to greenhouse gas (GHG) emissions is miniscule in comparison with other countries (it contributes only about 0.8 per cent of the total GHG emissions), it is one of the major victims of the adverse effects of climate change. The present study is an attempt to explore the impacts of climate change on the economic growth of Pakistan by conducting a national level analysis for the period 1973–2011. It has been found that temperature (proxy for climate change) has a negative and significant relationship with GDP, as well as with productivity in the agricultural, manufacturing and services sectors. The severity of these negative effects is higher for the Agriculture sector as compared to manufacturing and services.

Suggested Citation

  • Naeem Akram & Abdul Hamid, 2015. "Climate change: A threat to the economic growth of Pakistan," Progress in Development Studies, , vol. 15(1), pages 73-86, January.
    • Handle: RePEc:sae:prodev:v:15:y:2015:i:1:p:73-86
    DOI: 10.1177/1464993414546976
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1464993414546976
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1464993414546976?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
    ---><---

    References listed on IDEAS

    as
    1. Francesco Ricci, 2007. "Channels of transmission of environmental policy to economic growth," Post-Print hal-03062228, HAL.
    2. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    3. Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-937, July.
    4. Fankhauser, Samuel & S.J. Tol, Richard, 2005. "On climate change and economic growth," Resource and Energy Economics, Elsevier, vol. 27(1), pages 1-17, January.
    5. Mendelsohn, Robert & Dinar, Ariel & Sanghi, Apurva, 2001. "The effect of development on the climate sensitivity of agriculture," Environment and Development Economics, Cambridge University Press, vol. 6(1), pages 85-101, February.
    6. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, November.
    7. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    8. repec:fth:harver:1470 is not listed on IDEAS
    9. Ricci, Francesco, 2007. "Channels of transmission of environmental policy to economic growth: A survey of the theory," Ecological Economics, Elsevier, vol. 60(4), pages 688-699, February.
    10. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, December.
    11. Mankiw, N Gregory, 1990. "A Quick Refresher Course in Macroeconomics," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1645-1660, December.
    12. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    13. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    14. Sjak Smulders & Lucas Bretschger & Hannes Egli, 2005. "Economic growth and the diffusion of clean technologies : explaining environmental Kuznets," CER-ETH Economics working paper series 05/42, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    15. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(3), pages 233-240.
    16. Calzadilla, Alvaro & Pauli, Francesco & Roson, Roberto, 2006. "Climate Change and Extreme Events: An Assessment of Economic," Climate Change Modelling and Policy Working Papers 12055, Fondazione Eni Enrico Mattei (FEEM).
    17. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
    18. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    19. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    20. John Reilly, 1995. "Climate Change and Global Agriculture: Recent Findings and Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 727-733.
    21. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    22. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    23. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    24. Sir Nicholas Stern, 2006. "What is the Economics of Climate Change?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(2), pages 1-10, April.
    25. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    26. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    27. Roberto Roson & Calzadilla Alvaro & Pauli Francesco, 2005. "Climate Change and Extreme Events: an Assessment of Economic Implications," Computing in Economics and Finance 2005 49, Society for Computational Economics.
    28. Robert Mendelsohn & Larry Williams, 2004. "Comparing Forecasts of the Global Impacts of Climate Change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 315-333, October.
    29. Cooper, Richard N, 2000. "International Approaches to Global Climate Change," The World Bank Research Observer, World Bank, vol. 15(2), pages 145-172, August.
    30. Greiner, Alfred, 2005. "Anthropogenic climate change and abatement in a multi-region world with endogenous growth," Ecological Economics, Elsevier, vol. 55(2), pages 224-234, November.
    31. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    32. Martin L. Weitzman, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 703-724, September.
    33. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
    34. Thornton, P.K. & van de Steeg, J. & Notenbaert, A. & Herrero, M., 2009. "The impacts of climate change on livestock and livestock systems in developing countries: A review of what we know and what we need to know," Agricultural Systems, Elsevier, vol. 101(3), pages 113-127, July.
    35. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Nicholas Ngepah & Charles Raoul Tchuinkam Djemo & Charles Shaaba Saba, 2022. "Forecasting the Economic Growth Impacts of Climate Change in South Africa in the 2030 and 2050 Horizons," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    2. Md. Nur Islam & Md. Abdul Wadud, 2020. "Impact of Climate Change on Agricultural Production in Bangladesh: A Review," International Journal of Science and Business, IJSAB International, vol. 4(9), pages 125-137.
    3. Tran Thi Kim Oanh & Nguyen Thi Hong Ha, 2023. "Impact of income inequality on climate change in Asia: the role of human capital," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    4. Laila Shahzad & Ajwa Tahir & Maryam Dogar & Salar Saeed, 2021. "A metric-based assessment of climate and tourism in major cities of Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13607-13627, September.

    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. Naeem Akram* & Asma Gulzar**, 2013. "Climate change and economic growth : An empirical analysis of Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 23(1), pages 31-54.
    2. Naeem Akram, 2012. "Is climate change hindering economic growth of Asian economies?," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 1-18, December.
    3. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    4. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    5. Marco Letta & Richard S. J. Tol, 2019. "Weather, Climate and Total Factor Productivity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 283-305, May.
    6. repec:nbp:nbpbik:v:47:y:2016:i:6:p:463-494 is not listed on IDEAS
    7. Ho Thuy Ai & Ping, Lin, 2018. "Impacts of fiscal policy on economic growth: Another look from institutional perspective," Economics Discussion Papers 2018-45, Kiel Institute for the World Economy (IfW Kiel).
    8. Richard S. J. Tol, 2009. "The Economic Effects of Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 29-51, Spring.
    9. Nikolaev, Boris & Boudreaux, Christopher & Salahodjaev, Rauf, 2017. "Are individualistic societies less equal? Evidence from the parasite stress theory of values," Journal of Economic Behavior & Organization, Elsevier, vol. 138(C), pages 30-49.
    10. Dorota Ciołek & Tomasz Brodzicki, 2016. "Determinanty produktywności polskich powiatów," Bank i Kredyt, Narodowy Bank Polski, vol. 47(5), pages 463-494.
    11. Oleg Badunenko & Daniel Henderson & Romain Houssa, 2014. "Significant drivers of growth in Africa," Journal of Productivity Analysis, Springer, vol. 42(3), pages 339-354, December.
    12. Olivier Parent & Abdallah Zouache, 2009. "Geographical Features vs. Institutional Factors: New Perspectives on The Growth of Africa and Middle-East," Working Papers 490, Economic Research Forum, revised Jun 2009.
    13. Rodríguez-Pose, Andrés & Ketterer, Tobias, 2016. "Institutions vs. ‘First-Nature’ Geography – What Drives Economic Growth in Europe’s Regions?," CEPR Discussion Papers 11322, C.E.P.R. Discussion Papers.
    14. Dalgaard, Carl-Johan & Strulik, Holger, 2013. "The history augmented Solow model," European Economic Review, Elsevier, vol. 63(C), pages 134-149.
    15. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    16. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages 191-216, June.
    17. Fankhauser, Samuel & S.J. Tol, Richard, 2005. "On climate change and economic growth," Resource and Energy Economics, Elsevier, vol. 27(1), pages 1-17, January.
    18. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    19. Arvanitidis, Paschalis & Petrakos, George & Pavleas, Sotiris, 2007. "Determinants of economic growth: the experts’ view," Papers DYNREG20, Economic and Social Research Institute (ESRI).
    20. Ezebuilo Romanus Ukwueze & Ekene Stephen Aguegboh, 2018. "Institutional Determinants of Economic Growth in ECOWAS Sub-Region," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 75-79.
    21. Martine AUDIBERT & Pascale COMBES MOTEL & Alassane DRABO, 2010. "Global Burden of Disease and Economic Growth," Working Papers 201036, CERDI.

    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:sae:prodev:v:15:y:2015:i:1:p:73-86. 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: SAGE Publications (email available below). General contact details of provider: .

    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.