Investigating the Nexus between Energy Consumption and Environmental Degradation: Empirical Evidence from Pakistan

Abstract

The primary goals of this study are to evaluate the impact of energy consumption (EC) on environmental deterioration and to test the environmental Kuznets Curve (EKC) in the context of EC in Pakistan. This research examines data from 1990 to 2020 and uses ARDL methods for estimate. This study discovered that non-renewable energy (NREN) and GDP growth had an optimistic and noteworthy influence on CO2. However, renewable energy (REN) has a negative and substantial impact on CO2. The results also confirmed the EKC in Pakistan, which found an inverted U-shaped bond between GDPg and CO2. Furthermore, EKC has a turning point of 1.55%. Furthermore, this analysis contradicts the hypothesis H01 and concludes that energy use has a considerable impact on CO2. Similarly, dismisses H02 and concludes that it has a varying magnitude influence on carbon emissions. Similarly, rejects the H03 and concludes that the EKC occurs in Pakistan as a result of EC. As a result, this study indicated that EC has a significant impression on CO2 levels, as well as confirming the EKC in Pakistan. It is advised that the government prohibit the use of NREN and support the use of REN for household and commercial purposes in order to reduce CO2 in Pakistan and other developing nations. Furthermore, the government must boost economic growth after reaching a tipping point in order to minimize CO2 in Pakistan and other developing nations.