Impact of Population, GDP and Energy Consumption on Carbon Emissions: Evidence from Pakistan Using an Analytic Tool IPAT

Abstract

This study examines the relationship between CO2 emission, economic growth, population and energy consumption in Pakistan during period of 1975-2016. The study evaluates IPAT (Impact of CO2 x Population x Affluence x Technology) hypothesis where CO2 emission is influence by high population growth, economic growth, and technology. The study use ARDL bounds testing approach to estimate short and long run elasticities. The results confirm that population growth and energy demand both increase the CO2 emission, while the relationship between GDP and CO2 emissions is negative in Long-run, because the development of new low-carbon technologies enables a country to reach the same production level but at lower CO2 emissions, that improve the air quality indicator in a country. The results conclude that IPAT hypothesis is verified in Pakistan economy. Where population growth influenced the environmental quality, the government should have to control high mass population growth by increasing family planning expenditure in a country. The renewable energy resources are further policy implication that is desirable to reduced energy associated emission in a country.