Environmental Kuznets Curve and Pakistan: An Empirical Analysis

Khalid Ahmed

252 citations0/0 files storedProcedia Economics and Finance

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Energy, Environment, Economic Growth Climate Change Policy and Economics Vehicle emissions and performance

Abstract

In this study, the Environmental Kuznets Curve (EKC) is hypothesized to investigate the relationship between CO2 emission, economic growth, energy consumption, trade liberalization and population density in Pakistan with yearly data from 1971 to 2008. The cointegration analysis using Auto Regressive Distributed Lag (ARDL) bounds testing approach is incorporated. The results support the hypothesis both in short-run and long-run and inverted U-shaped relationship is found between CO2 emission and growth. Interestingly we found trade support the environment positively and population contributes to environmental degradation in Pakistan. The energy consumption and growth are the major explanatory variables which contribute to environmental pollution in Pakistan. Moreover, the time series data analysis is used and the stability of variables in estimated model is also assessed.

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References

1987Co-Integration and Error Correction: Representation, Estimation, and Testing 1990MAXIMUM LIKELIHOOD ESTIMATION AND INFERENCE ON COINTEGRATION — WITH APPLICATIONS TO THE DEMAND FOR MONEY 1994Economic Growth and the Environment 1991Environmental Impacts of a North American Free Trade Agreement 1998Is Free Trade Good for the Environment?1994Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?1994Economic Development and Environmental Quality: An Econometric Analysis 1994EMPIRICAL TESTS AND POLICY ANALYSIS OF ENVIRONMENTAL DEGRADATION AT DIFFERENT STAGES OF ECONOMIC DEVELOPMENT

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