Energy Consumption, Carbon Emissions, and Economic Growth in Pakistan: A Comprehensive Analysis of Long-Term Relations and Short-Term Dynamics
DOI:
https://doi.org/10.55737/qjssh.767528555Keywords:
Energy Consumption, Economic Growth, Urbanization, CO2 Emission, ARDLAbstract
In the current study, researchers have examined the association among consumption of energy, emission of carbon, and economic growth and investigated along with indicators such as urban population growth and rural population growth, whose data exist from the period 1981-2022. used (ADF) unite root test, ARDL, and bound test. The results based on ARDL models show that a unidirectional long-term relation exists between the variables being examined. In the short term, there is a strong and significant relationship between energy consumption (EC) and carbon emissions with economic gcorowth (GDP). The findings suggest that in Pakistan, energy is a factor for both short and long-term economic growth. Energy consumption, carbon emissions, and rural population growth, while the urban population also influences economic growth. The outcome of these empirical findings suggests that the country should aim at increasing energy consumption with minimum impacts of pollution and achieve energy security. Priority should be given to energy management that combines demand and supply factors. Efforts should be made to promote an adequate energy mix that includes clean, renewable energy and improve energy efficiency in a holistic framework. Environmental degradation, energy consumption, and urbanization policies must be adapted to achieve energy self-sufficiency together with minimum CO2 emissions.
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