This study aims to identify the main factors affecting carbon dioxide (CO₂) emissions in Pakistan, an issue of increasing importance due to its environmental and socio-economic implications. The project examines the relationship between Pakistan's carbon dioxide emissions (PAKISTAN_PAK_CO2_EMISSIO) and various economic and demographic factors, including population (PAKISTAN_PAK_POPULATION_), GDP per capita (PAKISTAN_PAK_GDP_PER_CAP),and energy consumption (PAKISTAN_PAK_CO2_EMISSIO). The least squares method was used to perform regression analysis on 21 observations. The results showed that energy consumption has a significant negative effect on CO2 emissions, while population and GDP per capita did not show a significant relationship with emissions. The model explains approximately 89.8% of the variation in CO2 emissions, as indicated by the R-squared value.
Additional diagnostic tests were performed for heteroscedasticity, multicollinearity, and autocorrelation. Breusch-Pagan-Godfrey is the result of a heterosexual test that has no obvious problems. Several ordinary linearity is not a problem. The Durbin-Watson statistic does not indicate autocorrelation.
Furthermore, the unit root test (a supplemental Dickey-Fuller test) shows that variables such as GDP per capita, population, and energy consumption are not stationary and may need to be differencing or transformed for further time series analysis. Finally, the cointegration test shows the existence of two cointegration equations, indicating the existence of a long-run relationship between the variables.
The analysis highlights the importance of energy use in determining Pakistan's CO2 emissions, while emphasizing the need for further model refinement to account for non-stationarity in the data and possible structural distortions. This analysis underscores the importance of energy consumption in determining CO2 emissions in Pakistan while highlighting the need for further refinement of the model to account for non-stationarity and potential structural breaks in the data. This sudy provides valuable insights for policymakers and stakeholders to develop effective energy policies and environmental strategies that support sustainable development in Pakistan.
The growing concern about the environmental impact of carbon dioxide (CO2) emissions has led to an increased interest in understanding the factors that drive these emissions. CO2 is considered the most significant greenhouse gas contributing to global climate change (Intergovernmental Panel on Climate Change [IPCC], 2021). As the global population continues to grow and industrialization accelerates, understanding the key determinants of CO2 emissions has become crucial for formulating effective climate policies. Scholars have identified various socio-economic factors that influence CO2 emissions, including energy consumption, population growth, economic development, and technological advancements. The relationship between economic growth and environmental degradation has been the subject of numerous studies, with the Environmental Kuznets Curve (EKC) hypothesis proposing that economic growth initially leads to environmental degradation, but beyond a certain threshold, it may lead to improvements in environmental quality (Kuznets, 1955). Similarly, energy consumption, particularly from fossil fuels, has been found to be one of the primary drivers of CO2 emissions (Stern, 2004). Population growth also plays a role in increasing emissions, as higher populations generally lead to higher energy demand and consumption (Ehrlich & Holdren, 1971). Furthermore, technological advancements and government policies are increasingly seen as vital for reducing emissions without impeding economic growth (Grossman & Krueger, 1995; Stern, 2007). This literature review examines the various determinants of CO2 emissions, focusing on energy consumption, economic growth, population size, and technological factors, while also addressing the role of government policies in shaping emission reduction strategies.