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Modeling the relationship between gross capital formation and CO2 (a)symmetrically in the case of Pakistan: an empirical analysis through NARDL approach
This paper tries to ensure the relationship between gross capital formation (GCF) and carbon dioxide (CO 2 ) emissions in the case of Pakistan for the period 1980–2016 by employing Non-Linear Auto Regressive Distribution Lag (NARDL) model under the expansion of Environmental Kuznets hypothesis (EKC)...
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Published in: | Environmental science and pollution research international 2019-03, Vol.26 (8), p.8111-8124 |
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Main Authors: | , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | This paper tries to ensure the relationship between gross capital formation (GCF) and carbon dioxide (CO
2
) emissions in the case of Pakistan for the period 1980–2016 by employing Non-Linear Auto Regressive Distribution Lag (NARDL) model under the expansion of Environmental Kuznets hypothesis (EKC) while controlling for coal and oil consumption variables as a potential factors of CO
2
emissions. Our main objective is to check whether or not the effect of changes in GCF on CO
2
emissions is asymmetric or symmetric for Pakistan that is among one of the main contributors to CO
2
emissions in Asia, as the emissions were grown by 15.6 million tonnes or 8.5% increase in percentage terms in 2016. Our result confirms the existence of an asymmetric effect of GCF shocks on CO
2
emissions both in the short and long-terms. Moreover, our empirical finding also suggests that coal and oil consumptions have a significant contribution to CO
2
emissions both in the short and long-terms. Further, our results also significantly support the existence of the EKC hypothesis both in the long and short-terms. That confirms the inverted U-shaped connection among per capita growth and CO
2
emissions in Pakistan. In the last, our study suggests that the implementation and use of clean energies and technologies are vital for controlling pollution in Pakistan. |
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ISSN: | 0944-1344 1614-7499 |
DOI: | 10.1007/s11356-019-04254-7 |