Link of Energy Consumption, FDI, Urbanization and GDP with Carbon Emissions: A time series analysis of Pakistan
Link of Energy Consumption, FDI, Urbanization and GDP with Carbon Emissions:
Keywords:
EC, FDI, Urbanization, TO, GDP and Carbon Emissions.Abstract
Pakistan is facing issues regarding environmental conditions in the region. In this research, see the long-term relationship of carbon emissions with foreign direct investment, trade openness, urbanization, and gross domestic product of Pakistan. Taking data of Pakistan from 1976-2018 from World Development Indicators. Now world is realized that environmental issues will be affecting the developing countries in the world. Most of the developing countries facing the problems which are causing due to environment. In this study, econometric techniques and methods were used for the empirical evidence. In this research work, the ARDL co-integration technique was used. Firstly, check the stationarity of the variables, then use co-integration, the error correction model, the bound test, the LM test for autocorrelation, the CUSUM square, and the CUSUM test for checking the stability of the model. Findings are showing that the long-run positive association of carbon emissions with FDI, GDP, EC, and UP. On the other side the long-run negative association of Carbon Emissions with trade openness. In the light of findings of results, we can say that more effective policy making and implantation of the policies regarding environment is fruitful for the country like Pakistan.
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