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Designing a clean environmental framework for Pakistan: analyzing the nonlinear impact of aggregate demand drivers on CO2 emissions

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Abstract

Aggregate demand in every country is one of the main components of macroeconomics, and Pakistan is no exception. This paper uses a fresh econometric framework to analyze the nonlinear impact of aggregate demand drivers on CO2 emissions in Pakistan by using a nonlinear ARDL approach over the data period from 1975 to 2019. The linear findings reveal that consumption and government expenditure indicates deteriorating effects on carbon emissions in long run in Pakistan. However, nonlinear findings revealed that positive change in government expenditure and trade has positive effects on carbon emissions. The positive change in investment has a negative significant and meaningful effect on the environment in Pakistan and asymmetric findings are also country-specific. Therefore, this study offers a few important policy implications for theorists, academics, and policymakers of Pakistan as well developing economies.

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The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. College of Economics and Management, Beijing University of Technology, Beijing, China

    Muhammad Afaq Haider Jafri, Huizheng Liu & Sohaib Mustafa

  2. School of Economics, Quaid-I-Azam University, Islamabad, Pakistan

    Sana Ullah & Muhammad Tariq Majeed

  3. Kardan University, Kabul, Afghanistan

    Shahzad Anwar

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  1. Muhammad Afaq Haider Jafri
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  2. Huizheng Liu
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  3. Sana Ullah
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  4. Muhammad Tariq Majeed
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  6. Sohaib Mustafa
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Contributions

This idea was given by Muhammad Afaq Haider Jafri. Muhammad Afaq Haider Jafri, Huizheng Liu, Sana Ullah, and Muhammad Tariq Majeed analyzed the data and wrote the complete paper, while Shahzad Anwar and Sohaib Mustafa read and approved the final version.

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Correspondence to Muhammad Afaq Haider Jafri.

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Jafri, M.A.H., Liu, H., Ullah, S. et al. Designing a clean environmental framework for Pakistan: analyzing the nonlinear impact of aggregate demand drivers on CO2 emissions. Environ Sci Pollut Res 30, 19292–19303 (2023). https://doi.org/10.1007/s11356-022-23483-x

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