Environmental Kuznets Curve hypothesis for Pakistan: Empirical evidence form ARDL bound testing and causality approach

Nazir, Muhammad Rizwan; Xia, Enjun; Ali, Zahid

doi:10.1080/15435075.2018.1529590

Cited by 48 publications

(19 citation statements)

References 49 publications

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“…Furthermore, the results in their study are computed using the dynamic ordinary least squares, which unable to address the cross-sectional effect. Various country-specific studies have also confirmed the EKC hypothesis where an inverted U-kind association between the proxy of environment quality and income is observed (Saboori et al, 2012;Kanzilal and Ghosh, 2013;Nazir et al, 2018). In recent times, Qiao et al (2019) have analyzed the EKC hypothesis for G20 countries, Dong et al (2019) have analyzed the EKC hypothesis for 120 countries, Zhao et al (2020) have analyzed the EKC hypothesis for China.…”

Section: Economic Growth and Environmental Qualitymentioning

confidence: 85%

Do economic endeavors complement sustainability goals in the emerging economies of South and Southeast Asia?

Sharma

Sinha²,

Kautish

2021

MEQ

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PurposeIn the present study, the authors intended to investigate whether the economic growth drivers such as per capita income, financial development, nonrenewable energy solutions and trade expansion have invigorated the level of environmental pollution in the eight developing nations of South and Southeast Asia.Design/methodology/approachConsidering the possibility of the cross-sectional dependency, the authors employed relatively new econometric approaches, that is, the Westerlund cointegration test and cross-sectional augmented distributed lag mean estimation (CS-DL) for the period of 1990–2015.FindingsThe simulation results of the study confirmed an N-shaped environmental Kuznets curve, which raised a question on the existing economic policies in these nations. Further, the study reported that the improvements in the financial sector, nonrenewable energy consumption and trade expansion contributed to increasing the level of CO2 emissions in the long run.Originality/valueBased on the results, the authors intended to provide a unique policy framework because the present policies are generating a trade-off between economic and environmental goals. If the suggested framework is employed across sectors, the given countries may likely achieve the sustainable development goals by 2030.

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Section: Economic Growth and Environmental Qualitymentioning

confidence: 85%

Do economic endeavors complement sustainability goals in the emerging economies of South and Southeast Asia?

Sharma

Sinha²,

Kautish

2021

MEQ

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“…The DOLS estimator is widely used and practically convenient to provide robust findings in the case of small samples as compared to alternative specifications, while it does not require pre-testing of the unit root, aptly used in mixed and higher orders of integration. Moreover, it also addresses the issues of serial correlation and simultaneity or endogeneity bias [65,68,85,86]. Esteve et al [87] argued that DOLS resolves the problem of a low power of classical cointegration tests, which makes it superior to other alternative options available for long-term effects.…”

Section: Results Of Fmols and Dynamic Ols (Dols) And Discussionmentioning

confidence: 99%

“…In Equation (2), CO 2 is expressed as a non-linear function of energy consumption, economic growth, services, and trade openness. The generalized model in Equation (2) was usually expressed in logarithmic transformation in many previous studies due to its several advantages over a simple linear form [15,47,68]. This allows calculating the elasticities of our regressors with respect to CO 2 emissions which are easy to interpret.…”

Section: Model Constructionmentioning

confidence: 99%

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

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“…Regarding to the methods of examining the environmental consequences of the trade volume on embodied carbon emissions in empirical research, the previous studies applied the ARDL method and FMOLS approach to establish trades and carbon emissions nexus (see for example, Nazir [ 31 ]; Khan et al [ 32 ]; Jebli and Youssef [ 33 ]). Previous literature related to international trades between China and EU is well documented in various sectors (see for example, Li et al [ 34 ]; Fang and Shakur [ 35 ]).…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Impacts on Embodied Carbon Emissions—Evidence from the Bilateral Trade between China and Germany

Chandio

Liu

2020

IJERPH

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This article attempts to investigate the impacts of bilateral trade on the environment by estimating the embodied carbon emissions between China and Germany over the period 1999–2018. The above impacts are broadly explored in the literature both under the framework of theoretical and empirical analysis. However, there exist fewer empirical studies exploring the nonlinear relationship between trade volumes and carbon emissions between a well-developed and emerging economies. By applying the multiregional input-output (MRIO) model, this article aims to reveal the impacts of trade on the environment in the case of China–Germany. Specifically, trade amounts between China and Germany rank high with a similarly increasing trend and both of them are large net exporting countries. However, China experienced much larger carbon emissions embodied in its exports to Germany. Despite potential concerns on the carbon leakage issue of China from Germany, we find that the bilateral trades fit an inverse U-shape in the embodied carbon emissions, which suggests that the trade between the two countries can finally reduce carbon intensity without obstructing economic development particularly in the long-term. This paper guides policy-makers to quantify the issue of CO2 transfer among bilateral trades in order to achieve the target of trading sustainability.

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Environmental Kuznets Curve hypothesis for Pakistan: Empirical evidence form ARDL bound testing and causality approach

Cited by 48 publications

References 49 publications

Do economic endeavors complement sustainability goals in the emerging economies of South and Southeast Asia?

Do economic endeavors complement sustainability goals in the emerging economies of South and Southeast Asia?

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Trade Impacts on Embodied Carbon Emissions—Evidence from the Bilateral Trade between China and Germany

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