Journal
ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
Volume 25, Issue 10, Pages 9461-9473Publisher
SPRINGER HEIDELBERG
DOI: 10.1007/s11356-018-1230-0
Keywords
CO2 emission; Transport energy consumption; FDI; Pakistan; ARDL
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The objective of this research is to examine the relationship between transport energy consumption, economic growth, and carbon dioxide emission (CO2) from transport sector incorporating foreign direct investment and urbanization. This study is carried out in Pakistan by applying autoregressive distributive lag (ARDL) and vector error correction model (VECM) over 1990-2015. The empirical results indicate a strong significant impact of transport energy consumption on CO2 emissions from the transportation sector. Furthermore, foreign direct investment also contributes to CO2 emission. Interestingly, the impact of economic growth and urbanization on transport CO2 emission is statistically insignificant. Overall, transport energy consumption and foreign direct investment are not environmentally friendly. The new empirical evidence from this study provides a complete picture of the determinants of emissions from the transport sector and these novel findings not only help to advance the existing literature but also can be of special interest to the country's policymakers. So, we urge that government needs to focus on promoting the energy efficient means of transportation to improve environmental quality with less adverse influence on economic growth.
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