Analysis of Production Emission (Industrial EKC) and Consumption Emission: An Empirical Investigation of STIRPAT Model In Case of Pakistan

Abstract

This study investigates a long-term and short term association among climatic change due to industrialization in Pakistan by using ARDL technique for the time spanof 1990 to 2019. The Present study uses Industrial value added in its place of economic growth for EKC in case of Pakistan as the industrial sector is considered the key cause of carbon dioxide (CO2) emission. Besides that study used Population density, Nuclear energy, Households Final consumption expenditure and trade openness as independent variables. Empirical findings come out with U shaped EKC instead of Inverted U shape EKC in incident of Pakistan in short and in long run. This is because of consumption of modern technology and Nuclear energy consumption in Industrialization, i.e evident with negative association of Nuclear energy with carbon emission in short and in long run in Pakistan. Households Final consumption expenditure also shows significant and negative association, as income increases people use more advanced home appliances so carbon emission decreased. Being the most densed populated country of the world Population density is the significant contributor of carbon emission in case of Pakistan. Policy Implication for Pakistan is to control Population Pressure and to use of Nuclear power in Industrialization may reduce carbon emission.