Estimating interlinks of carbon emissions from transportation, industrialization, and solid/liquid fuels with economic progress: evidence from Pakistan

The effect of transportation on the atmosphere is immense because it is the biggest energy consumer which burns much of the global oil. This triggers environmental impact and leads to a global warming by releasing carbon dioxide, including nitrous oxide and particulate pollution. This analysis key motive is to estimate the inter links of CO2 emissions from transportation, solid and liquid fuel utilization, industrialization and manufacturing, fossil fuel energy with economic progress in Pakistan. For stationarity purposes, time span data ranging from 1971-2019. The ARDL (Autoregressive Distributed Lag) method was applied with the estimation of long- and short-run dynamics. Furthermore, FMOLS (Fully Modified Least Square) and DOLS (Dynamic Least Square) techniques were also used to estimate the long term relationships amid variables. Outcomes exposed during the long-run that CO2 emissions from transportation, liquid fuel usage, industrialization and manufacturing sector and fossil energy use has positive coefficients with probability-values (0.476), (0.653), (0.613) and (0.711) correspondingly that exposed a constructive interaction with economic progress, while carbon emission from solid fuel utilization and CO2 emissions has adverse influence to economic progress of Pakistan. Similarly, FMOLS and DOLS techniques outcomes show that the variables CO2 emissions from transportation, liquid and solid fuel usage and fossil energy use demonstrate a constructive correlation with economic growth, while carbon emission from industrialization and manufacturing and CO2 emissions has adverse influence on economic progress in Pakistan. As a cross-cutting trend of sustainable development policy, Pakistan should pay greater attention to environmental issues and recognize their importance.

Automated summary

Transportation has a significant impact on the atmosphere as the largest energy consumer, resulting in carbon dioxide emissions, environmental impacts, and global warming. This study examines the interrelationships between CO2 emissions from transportation, fuel utilization, industrialization, and economic progress in Pakistan. The findings suggest a positive correlation between CO2 emissions from transportation, liquid fuel usage, industrialization, fossil energy use, and economic growth, while solid fuel utilization and carbon emissions have a negative influence on economic progress. As a cross-cutting trend of sustainable development policy, greater attention should be paid to environmental issues in Pakistan.