The Dynamic Linkage between Income, Energy Consumption, Urbanization and Carbon Emissions in Pakistan

This paper spotlights whether gross domestic product (GDP), energy consumption and urbanization affect Carbon dioxide (CO2) emissions covering the time span 1972-2014 in Pakistan. The empirical estimates of autoregressive distributed lag (ARDL) affirmed that energy consumption and GDP are the main drivers of the pollutant environment in Pakistan, and also quantitatively determine the definite impact percentage of each dynamic force in Pakistan. Specifically, the empirical findings determine that in the long run, energy consumption and GDP intensify CO2 emissions showing significant impact; however, industrialization and urbanization are found to be insignificant. Based on empirical findings, this suggests that the constricting economic gap implementation between urban and rural areas, amendments to the energy erection and mechanical novelty will offer a treasured reference for Pakistan in exertions to diminish carbon emissions.