Impact of Energy Consumption on Environment of Pakistan: Testing of Environmental Kuznets Curve Hypothesis
This study applied Johansen cointegration estimation technique to check the long run relationship between disaggregate energy consumption and environment. We also check the existence of Environmental Kuznets Curve with disaggregated energy data. Time series data set are used from 1971 to 2015 for Pakistan. ADF and PP tests are applied in this study. Results reveal that oil consumption in power, industry and transport sector have statistical significant and positive impact on CO2 emissions. While Environmental Kuznets Curve does not exist in this model. Gas consumption in household, power, and industrial sector have statistical significant and positive impact on CO2 emissions. While Environmental Kuznets Curve also does not exist in this model. Coal consumption in brick kilns sector affects emission positively and the impact is statistically significant. Results confirm that Environmental Kuznets Curve does not exist in all models. According to policy recommendations, firstly we should move to hydro power plants from thermal and secondly we should also improve our public transport system. Supervisor:- Dr. Usman Mustafa
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