Impact assessment of socioeconomic factors on dimensions of environmental degradation in Pakistan

Environmental degradation is a natural and socioeconomic cause-effect phenomenon that is widespread all over the world. The current study investigates the impact of socioeconomic factors on dimensions of environmental degradation in Pakistan for the period of 1984 to 2017. The impact of socioeconomic factors on dimensions of environmental degradation is investigated using the augmented Dicky-Fuller unit root test and the autoregressive distributed lag bounds test. The cumulative sum of recursive residuals and the cumulative square sum of recursive residuals were used to check the stability of the socioeconomic parameters on dimensions of environmental degradation of three investigated models. The study observed a negative and significant impact on environmental degradation in all three models. The analysis incorporated that FDI, per capita GDP, industrialization and the total population have a positive and significant effect on environmental degradation in the long run; as FDI, per capita GDP and total population increase, this will cause environmental degradation to increase. The rural population and agricultural land have an insignificant association with environmental degradation. The present study also indicates that dimensions of the environmental degradation in Pakistan are mostly influenced by the governance. However, this research will help the policy makers to understand the importance of the governance and environmental degradation.