Skip to main content

Advertisement

Log in

The impacts of conventional energies on environmental degradation: does Pakistan’s economic and environmental model follow the Kuznets curve?

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

This paper investigates the long-run dynamic association of carbon dioxide emissions and economic progress using the environmental Kuznets curve (EKC) hypothesis for Pakistan from 1972 to 2019. The other variables used along with the above indicators are urbanization, financial development, manufacturing, oil and gas energy consumption, and trade openness. The ARDL bounds testing methodology has been used and the results of the bound testing showed that a 1% increase in economic growth and financial development would increase CO2 emissions in the country by 4.277 and 0.0787%, respectively. Urbanization and manufacturing would increase CO2 emissions by 0.648 and 0.171%, respectively. Oil and gas energy consumption would also increase CO2 emissions by 0.130 and 0.1935%, respectively. Trade openness is the only factor found in the study which decreases emissions in the country in the long run by −0.087%. Besides, findings confirm the EKC hypothesis with the reversed U-shaped relation for per capita CO2 emissions and economic progress. However, the threshold point of the economy is approximately $2735.19 per capita, where economic progress can mitigate the impact of pollution lies beyond the study period, and GDP growth still increases emissions of the country and degrades the environment of Pakistan, as it is not yet reached at the turning level of the economy. As a result, GDP growth is still harming the economy of Pakistan as it has not yet reached the turning point of the economy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7

Similar content being viewed by others

Data availability

All data generated or analyzed during this study are included in this published article. Also, the datasets are available from the corresponding author on reasonable request.

References

  • Ahmad N et al. (2017) ‘Modelling the CO2 emissions and economic growth in Croatia: is there any environmental Kuznets curve?’, Energy, 123, pp. 164–172. Available at: https://doi.org/10.1016/j.energy.2016.12.106

  • Ahmed K (2017) Revisiting the role of financial development for energy-growth-trade nexus in BRICS economies, Energy, 128, pp. 487–495. Available at: https://doi.org/10.1016/j.energy.2017.04.055

  • Akbostanci E, Türüt-Aşik S, Tunç GI (2009) The relationship between income and environment in Turkey: is there an environmental Kuznets curve?, Energy Policy, 37(3), pp. 861–867. Available at: https://doi.org/10.1016/j.enpol.2008.09.088

  • Al-Mulali U, Ozturk I (2016) The investigation of environmental Kuznets curve hypothesis in the advanced economies: the role of energy prices, Renewable and Sustainable Energy Reviews, 54, pp. 1622–1631. Available at: 10.1016/j.rser.2015.10.131

  • Allard A et al (2018) The N-shaped environmental Kuznets curve: an empirical evaluation using a panel quantile regression approach. Environ Sci Pollut Res 25(6):5848–5861

    Article  CAS  Google Scholar 

  • Antonakakis N, Chatziantoniou I, Filis G (2017) ‘Energy consumption, CO2 emissions, and economic growth: an ethical dilemma’, Renew Sustain Energy Rev, 68(September 2016), pp. 808–824. Available at: https://doi.org/10.1016/j.rser.2016.09.105

  • Asian Development Bank (ADB) (2017) Climate Change Operational Framework 2017–2030: Enhanced Actions for Low Greenhouse Gas Emissions and Climate-Resilient Development. Available at: https://doi.org/10.22617/TCS178947-2

  • Baek J (2016) Do nuclear and renewable energy improve the environment? Empirical evidence from the United States, Ecological Indicators, 66, pp. 352–356. Available at: https://doi.org/10.1016/j.ecolind.2016.01.059

  • Bank W (2017) Atlas of Sustainable Development Goals 2017: From World Development Indicators. The World Bank

  • Bilgili F, Koçak E, Bulut Ü (2016) ‘The dynamic impact of renewable energy consumption on CO2 emissions: a revisited environmental Kuznets curve approach’, Renew Sustain Energy Rev, 54, pp. 838–845. Available at: https://doi.org/10.1016/j.rser.2015.10.080

  • Bölük G, Mert M (2014) ‘Fossil & renewable energy consumption, GHGs (greenhouse gases) and economic growth: evidence from a panel of EU (European Union) countries’, Energy, 74(C), pp. 439–446. Available at: https://doi.org/10.1016/j.energy.2014.07.008

  • ‘BP Statistical Review of World Energy Statistical Review of World’ (2019) The Editor BP Statistical Review of World Energy [Preprint]. Available at: https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2019-full-report.pdf

  • Chen Y, Wang Z, Zhong Z (2019) CO 2 emissions , economic growth , renewable and non-renewable energy production and foreign trade in China, Renewable Energy, 131, pp. 208–216. Available at: https://doi.org/10.1016/j.renene.2018.07.047.

  • Danish et al. (2017) Role of renewable energy and non-renewable energy consumption on EKC: evidence from Pakistan, J Clean Prod, 156, pp. 855–864. Available at: 10.1016/j.jclepro.2017.03.203

  • Dasgupta S, Laplante B, Mamingi N (2001) Pollution and capital markets in developing countries, Journal of Environmental Economics and Management, 42(3), pp. 310–335. Available at: https://doi.org/10.1006/jeem.2000.1161

  • Dickey DA, Fuller WA (1981) Likelihood ratio statistics for autoregressive time series with a unit root, Econometrica, 49(4), pp. 1057–1072. Available at: 10.2307/1912517

  • Dinda S (2004) Environmental Kuznets curve hypothesis: a survey, Ecol Econ, 49(4), pp. 431–455. Available at: https://doi.org/10.1016/j.ecolecon.2004.02.011

  • Dogan E, Inglesi-Lotz R (2017) Analyzing the effects of real income and biomass energy consumption on carbon dioxide (CO2) emissions: empirical evidence from the panel of biomass-consuming countries, Energy, 138, pp. 721–727. Available at: https://doi.org/10.1016/j.energy.2017.07.136

  • Dong K, Sun R, Hochman G (2017) Do natural gas and renewable energy consumption lead to less CO2 emission? Empirical evidence from a panel of BRICS countries, Energy, 141, pp. 1466–1478. Available at: https://doi.org/10.1016/j.energy.2017.11.092

  • Fodha M, Zaghdoud O (2010) Economic growth and pollutant emissions in Tunisia: an empirical analysis of the environmental Kuznets curve, Energy Policy, 38(2), pp. 1150–1156. Available at: https://doi.org/10.1016/j.enpol.2009.11.002

  • Friedl B, Getzner M (2003) Determinants of CO2 emissions in a small open economy, Ecological Economics, 45(1), pp. 133–148. Available at: https://doi.org/10.1016/S0921-8009(03)00008-9

  • Gokmenoglu KK, Taspinar N (2018) Testing the agriculture-induced EKC hypothesis: the case of Pakistan, Environ Sci Pollut Res, 25(23), pp. 22829–22841. Available at: https://doi.org/10.1007/s11356-018-2330-6

  • Grossman GM, Krueger AB (1991) Environmental impacts of a North American free trade agreement. National Bureau of economic research

  • Hanif I (2017) Economics-energy-environment nexus in Latin America and the Caribbean, Energy, 141, pp. 170–178. Available at: https://doi.org/10.1016/j.energy.2017.09.054

  • Hussain M et al. (2020) A comprehensive review of climate change impacts, adaptation, and mitigation on environmental and natural calamities in Pakistan, Environmental Monitoring and Assessment, 192(1). Available at: https://doi.org/10.1007/s10661-019-7956-4

  • Ibrahim MH, Law SH (2014) Social capital and CO2 emission - output relations: a panel analysis, Renew Sustain Energy Rev, 29, pp. 528–534. Available at: https://doi.org/10.1016/j.rser.2013.08.076

  • Irena IRA (2016) Renewable energy in cities, International Renewable Agency: Abu Dhabi, UAE [Preprint]

  • Ișik C et al. (2020) An evaluation of the tourism-induced environmental Kuznets curve (T-EKC) hypothesis: evidence from G7 countries, Sustainability (Switzerland), 12(21), pp. 1–11. Available at: 10.3390/su12219150

  • Jaunky VC (2011) The CO2 emissions-income nexus: evidence from rich countries, Energy Policy, 39(3), pp. 1228–1240. Available at: https://doi.org/10.1016/j.enpol.2010.11.050

  • Jayanthakumaran K, Verma R, Liu Y (2012) CO 2 emissions, energy consumption, trade and income: a comparative analysis of China and India, Energy Policy, 42(June 2011), pp. 450–460. Available at: https://doi.org/10.1016/j.enpol.2011.12.010

  • Kasman A, Duman YS (2015) CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: a panel data analysis, Economic Modelling, 44, pp. 97–103. Available at: https://doi.org/10.1016/j.econmod.2014.10.022

  • Kim K, Schmidt P (1990) Some evidence on the accuracy of Phillips-Perron tests using alternative estimates of nuisance parameters, Economics Letters, 34(4), pp. 345–350. Available at: https://doi.org/10.1016/0165-1765(90)90143-O

  • Lau LS, Choong CK, Eng YK (2014) Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: do foreign direct investment and trade matter?, Energy Policy, 68, pp. 490–497. Available at: https://doi.org/10.1016/j.enpol.2014.01.002

  • Lindmark M (2002) 1-s2.0-S0921800902001088-main.pdf, 42, pp. 333–347

  • Malik MY et al. (2020) Symmetric and asymmetric impact of oil price, FDI and economic growth on carbon emission in Pakistan: evidence from ARDL and non-linear ARDL approach, Science of the Total Environment, 726, p. 138421. Available at: https://doi.org/10.1016/j.scitotenv.2020.138421

  • Maneejuk N et al (2020) Does the environmental Kuznets curve exist? An International Study. Sustainability 12(21):9117

    Article  Google Scholar 

  • Mirza FM, Kanwal A (2017) Energy consumption, carbon emissions and economic growth in Pakistan: dynamic causality analysis, Renewable and Sustainable Energy Reviews, 72(October 2016), pp. 1233–1240. Available at: https://doi.org/10.1016/j.rser.2016.10.081

  • Morse S, Morse S (2019) Environmental performance index, The Rise and Rise of Indicators, pp. 102–123. Available at: https://doi.org/10.4324/9781315226675-5

  • Moutinho V, Varum C, Madaleno M (2017) How economic growth affects emissions? An investigation of the environmental Kuznets curve in Portuguese and Spanish economic activity sectors, Energy Policy, 106(April), pp. 326–344. Available at: https://doi.org/10.1016/j.enpol.2017.03.069

  • Narayan PK (2005) The saving and investment nexus for China: evidence from cointegration tests, Applied Economics, 37(17), pp. 1979–1990. Available at: 10.1080/00036840500278103

  • Narayan PK, Smyth R (2006) What determines migration flows from low-income to high-income countries? An empirical investigation of Fiji-U.S. migration 1972-2001, Contemporary Economic Policy, 24(2), pp. 332–342. Available at: https://doi.org/10.1093/cep/byj019.

  • Nasir M, Ur Rehman F (2011) Environmental Kuznets curve for carbon emissions in Pakistan: an empirical investigation, Energy Policy, 39(3), pp. 1857–1864. Available at: 10.1016/j.enpol.2011.01.025

  • Nasreen S, Anwar S, Ozturk I (2017) Financial stability, energy consumption and environmental quality: evidence from South Asian economies, Renewable and Sustainable Energy Reviews, 67, pp. 1105–1122. Available at: https://doi.org/10.1016/j.rser.2016.09.021

  • Nizamani RA et al. (2021) Dynamic influences of urbanization, economic expansion and primary energy consumption on carbon dioxide emissions in Pakistan, 12(2), pp. 171–176

  • Panayotou T (1993) Empirical tests and policy analysis of environmental degradation at different stages of economic development. International Labour Organization

  • Pao HT, Tsai CM (2010) CO2 emissions, energy consumption and economic growth in BRIC countries, Energy Policy, 38(12), pp. 7850–7860. Available at: https://doi.org/10.1016/j.enpol.2010.08.045

  • Pata UK (2018a) Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: testing EKC hypothesis with structural breaks, Journal of Cleaner Production, 187, pp. 770–779. Available at: https://doi.org/10.1016/j.jclepro.2018.03.236

  • Pata UK (2018b) The effect of urbanization and industrialization on carbon emissions in Turkey: evidence from ARDL bounds testing procedure, Environmental Science and Pollution Research, 25(8), pp. 7740–7747. Available at: https://doi.org/10.1007/s11356-017-1088-6

  • Pata UK (2018c) The influence of coal and noncarbohydrate energy consumption on CO2 emissions: revisiting the environmental Kuznets curve hypothesis for Turkey, Energy, 160, pp. 1115–1123. Available at: https://doi.org/10.1016/j.energy.2018.07.095

  • Pata UK (2021a) Linking renewable energy, globalization, agriculture, CO2 emissions and ecological footprint in BRIC countries: a sustainability perspective, Renewable Energy, 173, pp. 197–208. Available at: https://doi.org/10.1016/j.renene.2021.03.125

  • Pata UK (2021b) Renewable and non-renewable energy consumption, economic complexity, CO2 emissions, and ecological footprint in the USA: testing the EKC hypothesis with a structural break, Environmental Science and Pollution Research, 28(1), pp. 846–861. Available at: https://doi.org/10.1007/s11356-020-10446-3

  • Pata UK, Aydin M (2020) Testing the EKC hypothesis for the top six hydropower energy-consuming countries: evidence from Fourier Bootstrap ARDL procedure, Journal of Cleaner Production, 264, p. 121699. Available at: https://doi.org/10.1016/j.jclepro.2020.121699

  • Pata UK, Caglar AE (2021) Investigating the EKC hypothesis with renewable energy consumption, human capital, globalization and trade openness for China: evidence from augmented ARDL approach with a structural break, Energy, 216, p. 119220. Available at: https://doi.org/10.1016/j.energy.2020.119220

  • Pesaran MH, Shin Y (1995) An autoregressive distributed lag modelling approach to cointegration analysis

  • Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships, Journal of Applied Econometrics, 16(3), pp. 289–326. Available at: https://doi.org/10.1002/jae.616

  • Rafique MM, Rehman S (2017) National energy scenario of Pakistan – current status, future alternatives, and institutional infrastructure: an overview, Renewable and Sustainable Energy Reviews, 69(November 2016), pp. 156–167. Available at: https://doi.org/10.1016/j.rser.2016.11.057

  • Rahu MA et al (2020) ‘Decomposition and decoupling analysis of electricity consumption in. Pakistan’ 11(5):713–723

    CAS  Google Scholar 

  • Saboori B, Sulaiman J, Mohd S (2012) Economic growth and CO 2 emissions in Malaysia: a cointegration analysis of the Environmental Kuznets Curve, Energy Policy, 51, pp. 184–191. Available at: https://doi.org/10.1016/j.enpol.2012.08.065

  • Schwert GW (2002) Tests for unit roots, Journal of Business & Economic Statistics, 20(1), pp. 5–17. Available at: https://doi.org/10.1198/073500102753410354

  • Shafik N, Bandyopadhyay S (1992) Economic growth and environmental quality: time-series and cross-country evidence. World Bank Publications

  • Shahbaz M et al. (2020) A nonparametric analysis of energy environmental Kuznets curve in Chinese Provinces, Energy Economics, 89, p. 104814. Available at: https://doi.org/10.1016/j.eneco.2020.104814

  • Shahbaz M, Lean HH, Shabbir MS (2012) Environmental Kuznets curve hypothesis in Pakistan: cointegration and Granger causality, Renewable and Sustainable Energy Reviews, 16(5), pp. 2947–2953. Available at: https://doi.org/10.1016/j.rser.2012.02.015

  • Shukla V, Parikh K (1992) The environmental consequences of urban growth: cross-national perspectives on economic development, air pollution, and city size, Urban Geography, 13(5), pp. 422–449. Available at: https://doi.org/10.2747/0272-3638.13.5.422

  • Stern DI, Common MS, Barbier EB (1996) Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development. World Dev 24(7):1151–1160

    Article  Google Scholar 

  • Sugiawan Y, Managi S (2016) The environmental Kuznets curve in Indonesia: exploring the potential of renewable energy, Energy Policy, 98, pp. 187–198. Available at: https://doi.org/10.1016/j.enpol.2016.08.029

  • Sinha A, Muhammad S, and Balsalobre D. (2020) N-shaped Environmental Kuznets Curve : A Note on Validation and Falsification Munich Personal RePEc Archive [Preprint], (99313).

  • Tamazian A, Chousa JP, Vadlamannati KC (2009) Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries, Energy Policy, 37(1), pp. 246–253. Available at: https://doi.org/10.1016/j.enpol.2008.08.025

  • Terrell TD (2021) Carbon flux and N- and M-shaped environmental Kuznets curves: evidence from international land use change. J Environ Econ Pol 10(2):155–174. Available at: https://doi.org/10.1080/21606544.2020.1809527

  • Zhang Y et al. (2019) The environmental Kuznets curve of CO 2 emissions in the manufacturing and construction industries : a global empirical analysis, 79(June). Available at: https://doi.org/10.1016/j.eiar.2019.106303

Download references

Author information

Authors and Affiliations

Authors

Contributions

Rafeeque A. Nizamani: Conceptualization, data curation, formal analysis, investigation, methodology, software, validation, visualization, writing—original draft. Faheemullah Shaikh: Conceptualization, Formal Analysis, Writing—review and editing, and supervision. Abdul Ghafoor Nizamani: Formal analysis, visualization, and writing—review and editing. Nayyar H. Mirjat: Writing—formal analysis, visualization, and writing—review and editing. Laveet Kumar: Writing—formal analysis, review, and editing. Mamdouh El Haj Assad: Formal analysis, review, and editing.

Corresponding author

Correspondence to Laveet Kumar.

Ethics declarations

Ethics approval and consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Roula Inglesi-Lotz

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Nizamani, R.A., Shaikh, F., Nizamani, A.G. et al. The impacts of conventional energies on environmental degradation: does Pakistan’s economic and environmental model follow the Kuznets curve?. Environ Sci Pollut Res 30, 7173–7185 (2023). https://doi.org/10.1007/s11356-022-22611-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-022-22611-x

Keywords

Navigation