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Re-evaluating the asymmetric conventional energy and renewable energy consumption-economic growth nexus for Pakistan

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Abstract

To understand the nexus between economic growth and energy sources, in this study, we have selected Pakistan and collected data over the period 1980–2016. The neoclassical production function of Pakistan is augmented with conventional and renewable energy, capital, and labor. Conversely, the conventional and renewable models are being constructed by using GDP as an independent variable. This paper applied linear and nonlinear ARDL models to see whether the influence of conventional and renewable energy consumption on GDP per capita of Pakistan is symmetric or asymmetric and vice versa. Furthermore, the asymmetric causal effects between the energy variables and economic growth are also discussed. From the findings of the study, we deduce the long-run asymmetric effects of renewable energy on the economic growth of Pakistan. Similarly, the asymmetric effects of GDP, in the long run, are confirmed in both energy models. The symmetric and asymmetric causality results have recommended growth and conservation hypothesis. The findings propose that renewable energy is a significant factor in boosting the economic growth of Pakistan and a decline in the use of renewable energy could actually stem the economic growth of Pakistan.

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Data Availability

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

Notes

  1. https://www.iea.org/countries/pakistan

  2. http://www.eia.gov/countries/data.cfm

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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

  2. School of Economics, Government College University Faisalabad, Faisalabad, Pakistan

    Ahmed Usman

  3. Department of Finance, Beijing Technology and Business University, Beijing, China

    Qasim Raza Khan

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  1. Muhammad Afaq Haider Jafri
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  2. Huizheng Liu
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  4. Qasim Raza Khan
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Contributions

This idea was given by Muhammad Afaq Haider Jafri and Huizheng Liu. Ahmed Usman, Muhammad Afaq Haider Jafri, and Huizheng Liu analyzed the data and wrote the complete paper. Qasim Raza Khan read and approved the final version.

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Correspondence to Muhammad Afaq Haider Jafri or Ahmed Usman.

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Jafri, M.A.H., Liu, H., Usman, A. et al. Re-evaluating the asymmetric conventional energy and renewable energy consumption-economic growth nexus for Pakistan. Environ Sci Pollut Res 28, 37435–37447 (2021). https://doi.org/10.1007/s11356-021-13131-1

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