CO2 EMISSIONS FROM PAKISTAN AND INDIA AND THEIR RELATIONSHIP WITH ECONOMIC VARIABLES

The rapid increase in CO2 emissions has been a hot topic for whole world because of their major contribution to greenhouse gases (GHG) which is an ultimate cause of global warming. This study analyses spatially gridded data from EDGAR (Emissions Database for Global Atmospheric Research) and linear relationship using multiple linear regression model between CO2 emissions and four economic variables (energy use, urban population, gross capital formation and GDP at market prices) for Pakistan and India. Additionally, four major tools (f-test, t-test, time series analysis, and prediction errors) are used for the purpose of investigating linear relationship and efficiency of the model. EDGAR data shows that about 200 teragram CO2 has been emitted from Indo-Gangatic plain. Analysis revealed that the most effective predictor for both the Pakistan and India is energy use. The value of f-stat and t-stat showed that the economic variables have joint and individual significance for the regression model at p<0.05. Time series revealed that CO2 emissions increased gradually from 1971 to 2011. Error analysis indicated that regression model for Pakistan is more efficient than that of India. New policies can be devised and decisions can be taken on the basis of information given by this paper.