Impact of globalization, economic factors and energy consumption on CO2 emissions in Pakistan

Abstract

This research scrutinizes the impact of globalization, economic factors and energy consumption on CO₂ emissions in Pakistan from 1971 to 2016 by utilizing dynamic ARDL simulations model Jordan and Philips (2018). Dynamic ARDL simulations model has capability to predict the actual positive and negative change in the independent variables and its effect on the dependent variable. The examined results of dynamic ARDL simulations indicates that Energy consumption, financial development, trade, foreign direct investment, economic globalization, social globalization and political globalization have positive effect on CO₂ emissions in Pakistan while urbanization, economic growth and innovation have negative effect on CO₂ emissions in Pakistan while in the short run the examined results of dynamic ARDL simulations indicate that energy consumption, urbanization, economic growth, financial development, economic globalization, social globalization and political globalization have positive effect on CO₂ emissions in Pakistan while trade, innovation and foreign direct investment have negative effect on CO₂ emissions. Based on the results of this study policy implications are suggested for Pakistan.

Keywords: CO(2) emissions; Dynamic ARDL simulations; Economic factors; Energy consumption; Globalization.