HOW DOES RENEWABLE ENERGY AFFECT CARBON DIOXIDE EMISSIONS? FRESH EVIDENCE FROM PAKISTAN
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Date
2022-05-20
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UMT,Lahore
Abstract
Assessing the association between carbon dioxide (๐ถ๐ถ2) emissions and renewable energy (REN)
has been a significant focus of several decades for environmentalists, academia, stakeholders,
and government entities. It has drastically changed, and exacerbated Electricity has always been
thought of as a traditional production factor. Energy is required not only for production but also
for long-term economic growth, which can only be achieved with a consistent energy supply.
Although renewable energy is essential to protect the future climate, electricity is regarded as
the backbone of economic progress and well-being. Thus, in Pakistan, environmental pollution
significantly increased due to the discharge higher concentration of carbon dioxide emissions. It
has a multifaceted effect on pollution emissions. Thus, this research investigates the nonlinear
and linear connection between RE and ๐ถ๐ถ2emissions over 1980-2020 in Pakistan. For the
empirical estimation this research 1st used Augmented Dickey fuller (ADF), and Phillips Perron
(pp) unit root tests to inspect the level of integration. After the confirmation of integration order
ahead to inspect the symmetric and asymmetric short and long-run elasticities of coefficients,
ARDL and nonlinear ARDL econometric technique is employed. The ADF and PP unit tests
indicate mixed order of integration i.e.,๐ถ๐ถ2, and UR are integrated as I (1) and rest of variables
integration order is I (0). After the confirmation of integration order, we used symmetric and
asymmetric ARDL. Besides, the empirical findings from symmetric ARDL depicts that increases
in the level of RE meaningfully decline in๐ถ๐ถ2 in the long run. The results also show that GDP
statistically significantly stimulate the ๐ถ๐ถ2 Ems in the long run in Pakistan. According to the
nonlinear ARDL estimation technique that partial sum of positive changes in RE are negatively
connected with carbon emissions both in the short and long run. On the other hand, partial sum
of negative change in RE are positively connected with ๐ถ๐ถ2 Ems in the short and long run.
Further, coefficient of HD considerably declines in ๐ถ๐ถ2 Ems in the long run. However, GDP
and UR are positively connected with carbon emissions in the long run. Further, the result
suggests that TO considerably improve the environmental performance in Pakistan. Moreover,
the finding assumed that the positive part of RE infers a more significant effect than the negative
part. Study results show that an eco-friendly consumption pattern may promote. The insertion
of greener
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forms of energy in urban dwellers must be enhanced, which would help combat the upsurge in
industrial and housing carbon dioxide emissions.