Open AccessNexus between export variety and carbon emissions in Pakistan: The role of FDI and technological development
Author(s) -
Ihtisham ul Haq,
Bahtiyar Mehmed,
Sisira Kumara Naradda Gamage,
Piratdin Allayarov,
Dilawar Khan,
Zeeshan Zaib Khattak
Publication year - 2022
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0263066
Subject(s) - kuznets curve , environmental degradation , foreign direct investment , nexus (standard) , greenhouse gas , context (archaeology) , natural resource economics , economics , technological change , ordinary least squares , climate change , variety (cybernetics) , environmental science , international economics , econometrics , macroeconomics , engineering , biology , mathematics , ecology , statistics , paleontology , embedded system
Carbon emissions constitute a large portion of greenhouse gases that are responsible for global warming and climate change. This study examines the impact of export variety on carbon emissions along with foreign direct investment (FDI) and technological development as determinants of environmental degradation in Pakistan. Moreover, this study is conducted in the context of the environmental Kuznets curve hypothesis (EKC). This study applies dynamic ordinary least squares and error correction models for long-term and short-term estimates, respectively. The results indicate that the EKC hypothesis is valid in the long term. This implies that Pakistan’s economy reached the threshold level of income, after which an increase in income was not responsible for environmental degradation. Export variety restrains environmental degradation in the short term and is not a significant factor in the long term. Energy consumption has aggravated environmental degradation, while FDI and technological development are restraining environmental degradation. Policy measures are recommended to curb environmental degradation in Pakistan.