Revisiting the growth-carbon dioxide emissions nexus in Pakistan.

Lahiani, Amine

Pakistan is the most polluted country according to the concentration of air pollution criterion and it has experienced a significant rise in economic growth during the recent years. This paper analyzes the nexus of CO2 emissions and economic growth using quarterly data over the period of 1960Q1-2014Q4. To provide conclusive policy recommendations, this study applied different econometric methodologies such as the quantile causality approach, the linear ARDL (autoregressive distribution lag) model and the quantile ARDL (QARDL) model. The results indicate evidence of causality running from economic growth to CO2 emissions at medium quantiles at the 5% level and at low and medium quantiles at the 10% significance level. Findings of linear and nonlinear ARDL models also support the transmission of growth to CO2 emissions in the long and short run. The Wald test for symmetry sustains the nonlinear ARDL model. Useful policy implications can be learned from the empirical findings.

PAKISTAN; ECONOMIC development; CARBON dioxide mitigation; ENVIRONMENTAL quality; GREENHOUSE gas mitigation

Environmental Science & Pollution Research, 2018, Vol 25, Issue 35, p35637

0944-1344

Academic Journal

10.1007/s11356-018-3524-7