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Bivariate cointegration between poverty and environment: a case study of Pakistan (1980-2009)

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  • Khalid Zaman
  • Waseem Ikram
  • Iqtidar Ali Shah

Abstract

The objective of this paper is to empirically investigate a two-way statistical relationship between the agriculture environment and rural poverty. To recognise the relationship between the two variables, a time series, co-integration and Granger causality tests have been employed. Secondary data pertaining to Pakistan from 1980-2009 on rural poverty and environmental factors (such as commercial energy consumption, water availability and total cropped area) have been used for the analysis. The empirical results only moderately support the conventional view that rural poverty has a significant long-term casual effect on environmental proxies in Pakistan. The present study finds evidence of uni-directional causality between poverty and the environment in the context of the agriculture sector in Pakistan.

Suggested Citation

  • Khalid Zaman & Waseem Ikram & Iqtidar Ali Shah, 2010. "Bivariate cointegration between poverty and environment: a case study of Pakistan (1980-2009)," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(8), pages 977-989.
    • Handle: RePEc:taf:jenpmg:v:53:y:2010:i:8:p:977-989
    DOI: 10.1080/09640568.2010.495537
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    References listed on IDEAS

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    1. Will Cavendish, 1999. "Poverty, inequality and environmental resources: quantitative analysis of rural households," CSAE Working Paper Series 1999-09, Centre for the Study of African Economies, University of Oxford.
    2. World Bank, 2007. "Pakistan : Promoting Rural Growth and Poverty Reduction," World Bank Publications - Reports 7984, The World Bank Group.
    3. William Cavendish, 1999. "Poverty, inequality and environmental resources: quantitative analysis of rural households," Economics Series Working Papers WPS/1999-09, University of Oxford, Department of Economics.
    4. Arief Anshory Yusuf, 2004. "Poverty and Environmental Degradation: Searching for Theoretical Linkages," Working Papers in Economics and Development Studies (WoPEDS) 200403, Department of Economics, Padjadjaran University, revised Oct 2004.
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    Cited by:

    1. Baloch, Muhammad Awais & Danish, & Khan, Salah Ud-Din & Ulucak, Zübeyde Şentürk, 2020. "Poverty and vulnerability of environmental degradation in Sub-Saharan African countries: what causes what?," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 143-149.
    2. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth and poverty in forecasting framework: Pakistan's future in the year 2035," Economic Modelling, Elsevier, vol. 30(C), pages 468-491.
    3. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface," Economic Modelling, Elsevier, vol. 29(4), pages 1220-1227.
    4. Mumtaz, Rehma & Zaman, Khalid & Sajjad, Faiza & Lodhi, Muhammad Saeed & Irfan, Muhammad & Khan, Imran & Naseem, Imran, 2014. "Modeling the causal relationship between energy and growth factors: Journey towards sustainable development," Renewable Energy, Elsevier, vol. 63(C), pages 353-365.
    5. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.

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