The Impact of Renewable Energy; Financial Development and Economic Growth on Carbon Emission: Empirical Evidence from a Developing Economy

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Published Jun 1, 2024
https://doi.org/10.61506/02.00210
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Vol. 10 No. 2 (2024): Journal of Policy Research

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Iftikhar Ahmad
Assistant Professor; Hailey College of Banking and Finance, University of the Punjab, Lahore, Pakistan
Arifa Saeed
Assistant Professor; Department of Economics and Finance, Greenwich University, Karachi
Asra Jabbar
Lecturer; Lahore Garrison University, Lahore
Dr. Marie G. Nakitende
Senior Lecturer; Uganda Martyrs University, Uganda

Abstract

This research investigates the impact of renewable energy; financial development, economic growth, nonrenewable energy and natural resource rents on carbon emissions in Pakistan. An annual data series ranging from 1990 to 2022 is used; while Pesaran’s et al. (2001) cointegration test is utilized and empirical results confirm that renewable energy, financial development, nonrenewable energy and economic growth have long run cointegrating relation with carbon emissions. The results further provide evidence that utilization of clean energy combats carbon emission while financial development, economic growth and unclean energy promote carbon emission. Natural resource rents also help in combating carbon emission but only in long run. These results are reliable as guided by diagnostics used in this research. This research suggests that both clean energy and natural resources must be promoted to combat carbon emissions while financial development; economic growth and nonrenewable energy may be escalated carefully because these are promoting environmental pollution in Pakistan.

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
[1]
Ahmad, I., Saeed, A., Jabbar, A. and G. Nakitende, M. 2024. The Impact of Renewable Energy; Financial Development and Economic Growth on Carbon Emission: Empirical Evidence from a Developing Economy. Journal of Policy Research. 10, 2 (Jun. 2024), 90–96. DOI:https://doi.org/10.61506/02.00210.
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