Impact of urbanization on CO2 emissions in emerging economy: Evidence from Pakistan

This study was designed to explore the impact of urbanization on carbon dioxide emissions in Pakistan. The study employed time series data for the period 1972-2014. Auto Regressive Distributed Lag (ARDL) bound testing approach to co-integration was employed for long run and short analysis and VECM model was used for causal analysis. Results showed that there was cointegation among the variables. Urbanization was found enhancing carbon emissions both in the long run and short run. Unidirectional short run causality existed from urbanization to carbon emissions. This study provided policy implications. Vehicular emissions can be reduced in urban areas by promoting public urban transportation system. Government interventions are required for adaptation of green technology by urban industrial and residential sectors and campaign should be launched to educate and train people regarding mitigation and adaptation with respect to environmental degradation.