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April 11, 20260 citationsOpen Access

The Effects of Economic, Technological, and Institutional Factors on the Co2 Emissions in Pakistan Using Ardl Approach

CRContemporary Journal of Social Science Review

Key Points

This research investigates how economic, technological, and institutional factors influence CO2 emissions in Pakistan.
Used Autoregressive Distributed Lag (ARDL) approach for analysis.
Analyzed data spanning from 1995 to 2024.
Evaluated relationships among GDP per capita, trade openness, and foreign direct investment with CO2 emissions.
GDP per capita increases CO2 emissions, aligning with the Environmental Kuznets Curve hypothesis.
Trade openness significantly reduces CO2 emissions.
Foreign direct investment also raises CO2 emissions, supporting the Pollution Haven Hypothesis for Pakistan.

Abstract

This research examines the relationships among economic, technological, and institutional factors and CO2 emissions in Pakistan. It uses Autoregressive Distributed Lag (ARDL) bounds testing approach to obtain long- and short-run results by using data from from1995 to 2024. The results showed that GDP per capita increases CO2 emissions (consistent with the first half of the Environmental Kuznets Curve (EKC) Hypothesis while trade openness (TO) significantly reduces emissions. Moreover, foreign direct investment (FDI) also increases CO2 emissions which confirming the Pollution Haven Hypothesis (PHH) for Pakistan. Based on these findings, the study proposes trade and FDI should focus on environmentally sustainable, technology-intensive activities, supported by stronger environmental institutions to reduce CO2 emissions in Pakistan.

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