The dynamic nonlinear influence of ICT, financial development, and institutional quality on CO2 emission in Pakistan: new insights from QARDL approach

This novel research is an argumentative subject which was needed to be addressed and to fill this gap, the author examined the effect of financial development, information and communication technology, and institutional quality on CO2 emission in Pakistan by using quantile autoregressive distributed lag (QARDL) model. The data were obtained for the period from 1995Q1 to 2018Q4. In the long run, GDP and institutional quality have a positive impact on CO2 emission when this emission is already high, which shows that if the GDP and institutional quality increases, the CO2 emission also increases. Moreover, financial development and ICT has a negative impact on CO2 emission irrespective of emission level that whether it is high or low in the country, which shows that if financial enhancement and ICT increases, carbon emission decreases. The study also supported the EKC hypothesis in Pakistan.