The role role of Financial Development and Technological Innovation towards Sustainable Development in Pakistan: Fresh insights from consumption and territory-based emissions

In the contemporary world, environmental problems are a major human concern. The status of the environment and its management are prerequisites for every country's sustainable development. Following the Paris Climate Summit (COP21), Pakistan has amplified its efforts to address environmental issues. In this pursuit, this study aims to provide a new perspective by examining the impact of economic globalization, financial development, energy use, economic development and technological innovation with consumption and territory-based emissions from 1990Q1 to 2019Q4 in Pakistan. The study used Dynamic Autoregressive-Distributed Lag (ARDL) simulations and Frequency Domain Causality (FDC) methods. The empirical evidence reveals that financial and economic development stimulate both consumption and territory-based emissions in the short and long run. However, energy use intensifies consumption and territory-based emissions only in the long run. Also, in the short-run economic globalization adversely affects consumption and territory-based emissions while in the long run rises just consumption-based emissions. However, technological innovations decrease both emissions substantially in the long term. Finally, FDC outcomes endorsed the hypothesis. The study suggests that policymakers discourage non-renewables and increase renewable energy use to decrease consumption and territory-based emissions. The results would help Pakistan reach more eco-friendly energy technologies and a more sustainable energy environment to accomplish SDG 7 and 13 goals.

Automated summary

This study examines the impact of economic globalization, financial development, energy use, economic development, and technological innovation on consumption and emissions in Pakistan. The empirical evidence reveals that financial and economic development stimulate consumption and emissions in both the short and long run. Energy use intensifies consumption and emissions only in the long run. Economic globalization adversely affects consumption and emissions in the short run but increases consumption-based emissions in the long run. Technological innovations decrease emissions in the long term. The study suggests policymakers discourage non-renewables and increase renewable energy use to decrease consumption and emissions.