Open AccessCO2 and Environment Change Evidence from Pakistan
Author(s) -
Javeria Masood,
Fatima Farooq,
M. A. Saeed
Publication year - 2015
Publication title -
review of economics and development studies
Language(s) - English
Resource type - Journals
eISSN - 2519-9706
pISSN - 2519-9692
DOI - 10.26710/reads.v1i2.116
Subject(s) - environmental degradation , foreign direct investment , energy consumption , environmental pollution , population growth , population , consumption (sociology) , investment (military) , government (linguistics) , business , natural resource economics , economics , development economics , environmental protection , environmental health , geography , macroeconomics , political science , ecology , biology , medicine , social science , linguistics , philosophy , sociology , politics , law
A safe and healthy environment is a basic right of all living bodies but in current era pollution is at peak. The present study applied bound test based co-integrating technique using annual time series data from 1970-2014 for exploring major determinants of Environmental degradation. Present study included four determinants were energy consumption, gross domestic products, FDI and population growth. Finding of the present observed a significant relationship among energy consumption, GDP, population growth and environmental degradation in short run and long-run. However, foreign direct investment has a positive and significant association with environmental degradation at 10% level of significance both in short and long-run. The econometric findings suggest that Pakistan has to sacrifice use of energy consumption, to have a safe and healthy environment for better livings; Pakistan should adopt other way of energy like solar energy .While foreign direct investment must be used for pollution free machine or pollution free projects so that we can have clean Pakistan. Government of Pakistan should care about green policy and should spread awareness in public so that population growth should not be a problem of environmental degradation. This research study made a unique participation in emergent body of empirical studies on practices of environmental awareness in Pakistan by using bounds test based co-integration technique.