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Incorporating environmental pollution and human development in the energy-growth nexus: A novel long run investigation for Pakistan

International Journal of Environmental Research and Public Health, ISSN: 1660-4601, Vol: 17, Issue: 14, Page: 1-22
2020
  • 43
    Citations
  • 0
    Usage
  • 84
    Captures
  • 0
    Mentions
  • 18
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    43
  • Captures
    84
  • Social Media
    18
    • Shares, Likes & Comments
      18
      • Facebook
        18

Article Description

Energy acts as a catalyst to boost the human development index (HDI) in a country. However, the overuse of energy leads to environmental deterioration, which is a byproduct of economic development. Due to the utilization of non-renewable energy sources for a long time, worldwide environmental conditions have become alarming. This study investigates the relationship between renewable and non-renewable energy consumption, economic growth, environmental sustainability, and the human development index (HDI) in Pakistan. The investigation incorporates population growth and technology variables to form a multivariate framework. We use a fully modified ordinary least squares (FMOLS) approach to time-series data from 1990–2017. To check the robustness of estimations, we apply the Gregory–Hansen test with a causality test under the VECM to confirm this association’s directions. Our findings confirm that non-renewable energy sources have a positive association with economic growth and CO emissions. However, human development, technology, and renewable energy boost economic development and reduce environmental pollution in Pakistan. The co-integration results confirmed the long run connectivity among all variables. The causality outcomes support the bidirectional causality between renewable and non-renewable energy consumption, economic growth, and CO emissions, both in the short and long run. These outcomes suggest that Pakistan should focus on energy shifts and gradually increase the share of renewables in its energy mix under the China Pakistan Economic Corridor (CPEC). Additionally, the government should increase human and technological development to enhance economic and environmental sustainability.

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