Use of Non Fossil Fuel Resources, Electricity, Economic Growth and Carbon Dioxide Emission in Pakistan

Abstract

The ARDL (autoregressive distributed lag model) approach is used to study the effects of non fossil fuel resources, economic growth per capita, and use of electricity on carbon dioxide emanations in Pakistan from 1971 to 2014. The outcomes of OLS regression propose that use of non  fossil fuel resources play an essential function in curbing carbon dioxide emanations because sign of coefficients is negative and significant, on  the contrary the economic growth and electricity consumption increase carbon dioxide emanations in the environment.  The findings of ARDL propose that all variables have no effect on the carbon dioxide emanations in the long-run. Nevertheless, the Granger Causality test suggests there is bidirectional causality between carbon dioxide emanations and economic growth per capita.  Similarly, there is unidirectional causality between electricity utilization and carbon dioxide emissions. According to OLS regression findings, this study concluding that uses of non fossil fuel resources mitigate carbon dioxide emissions in Pakistan very effectively and therefore government give preference to use of non fossil fuel resources.