The Influence of Economic Growth and Energy Consumption on Environmental Degradation in Pakistan

Abstract

Globalization has substantial influence on the environmental issues and consequently on the economic activities of a country. Environmental problems are more prominent in developing countries. With the growing development, the issue of environmental degradation is also enhanced. The non-renewable energy consumption is the main cause of environmental degradation and this problem can’t be ignored. Therefore, the main objective of this research is to analyze the connection among energy consumption, growth of an economy, and emission of carbon dioxide gas in Pakistan. The data is collected from World development Indicators. Autoregressive Distributed-Lag Model (ARDL) is used for the analysis. The outcomes of ARDL technique stipulate that energy consumption and growth of an economy rise the emission of CO2 in Pakistan. On the basis of these results, it is suggested that policy makers in Pakistan must implement and encourage different sources of energy, which are renewable and will support to fulfill the huge demand of energy to boost the economy and to contribute in a sustainable environment of Pakistan.