Impact of Electricity Power Consumption, GDP, Trade, Urban Population, Foreign Direct Investment and Renewable Energy Consumption on CO2 Emissions: Evidence from Pakistan

Abstract

Over the last few decades, the contribution of CO2 emissions to the environment has shown an increasing trend. The greenhouse gases increase the temperature of the environment globally and particularly in Pakistan. History is witness that the activities of humans mostly affect the environment. The goal of this study is to explore the link between variables such as Trade, FDI (Foreign Direct Investment), REC (Renewable Energy Consumption), EPC (Electricity Power Consumption), Economic Growth, Urban Population, and Carbon Emissions inside Pakistan over the time period of 1990 to 2022. The Auto Regressive Distributed Lag (ARDL) technique is utilized for estimation. The result shows that the long-run relationship exists between these variables. The REC, Economic Growth, and FDI significantly affect CO2 emissions, while the remaining variables have insignificant effects on carbon emissions. Moreover, based on the findings of this study recommends that the government adopt strict policies and strategies to overcome climate problems and control pollution.