Impact of Energy Consumption, Urbanization, FDI and Economic Growth on Co2 Emission in Pakistan
Author: Saba Bibi

This study aims to provide better and comprehensive understanding of how energy consumption, urbanization. FDI and economic growth impact on CO2 emission. By applying time series data in case of Pakistan, analysis has been done over the period of 1973-2017. ARDL co-integration and granger causality is employed to examine the relationship and causality among energy consumption, urbanization, FDI economic growth and CO2 emission. Based on earlier studies, main indicators that have impact on CO2 emission are energy consumption, urbanization, FDI and economic growth. The overall analysis suggests that relationship between energy consumption, urbanization. FDI economic growth and CO2 emission is positive and statistically significant. This infers that GDP growth, urbanization, FDI and energy consumption are key factors of CO2 production. The result of Granger causality shows that there is twodirectional causality among CO2 emission and economic growth similarly among FDI and CO2 emission which demonstrate that economic actions FDI influx are key causes of global pollutant CO2 emission. Correspondingly, there is one-directional causality as of energy consumption headed for CO2 emission, depicts that energy is leading cause in CO2production. Supervisor:- Dr. Ayaz Ahmad

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Keywords : Co2 Emission in Pakistan, Economic Growth, Energy Consumption, FDI, Urbanization
Supervisor: Ayaz Ahmad

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