Impact of Energy Consumption on CO2 emissions: Case of Pakistan

Abstract

This study investigates the long-term relationship between the carbon dioxide emissions, energy consumption, along with final consumption expenditure with regards to Pakistan by employing time series data from 1972 to 2013. For empirical analysis the Auto regressive distributed lag (ARDL) methodology is employed. A relationship between the energy consumption and the CO2 emission has been founded. The results of granger causality test point out the one way causality runs through energy consumption to carbon dioxide emission. The findings of the study also show that the CO2 emission is mainly determined by the energy consumption and the final consumption expenditure.