Does Globalization Cause Greenhouse Gas Emissions in Pakistan? A Promise to Enlighten the Value of Environmental Quality

Abstract

Global environmental issues such as environmental degradation, climate change, and global warming have posed a threat to the global economy, including Pakistan. The primary source of these problems is greenhouse gas emissions. These emissions are the result of human activity. The objective of the study was to investigate the symmetric and asymmetric relationship between globalization and greenhouse gas emissions in Pakistan. The ARDL modern econometric techniques of the time series model were used. Firstly, the stationarity test favors the use of the ARDL model in this study. The BDS test result confirmed that the ARDL model has a non-linearity issue. As a result, the ARDL approach was used to test both the symmetric and asymmetric effect. The results of the asymmetric ARDL model are more robust and reliable than those of the symmetric ARDL model. According to the results of the symmetric ARDL, economic, social, and political globalization have a positive relationship with greenhouse gas emissions in both the short and long run. Furthermore, the long-run results of the asymmetric ARDL model show that positive and negative shocks of economic and political globalization have positive and negative shock effects on greenhouse gas emissions. In the long run, however, the positive shock of social globalization has a negative relationship with greenhouse gas emissions. According to the results of impulse response functions, economic globalization has a significantly more relationship with greenhouse gas emissions than social and political globalization. A policy should be developed that allows only the positive effects of globalization while prohibiting the negative effects of globalization.