Impacts of Urbanization FDI Industrialization and Economic Growth on Carbon Emissions in Pakistan
DOI:
https://doi.org/10.58932/MULE0007Keywords:
Carbon Emission, Domestic Investment, FDI, Gross Domestic InvestmentAbstract
The purpose of this study is to explore the effect of urbanization by adding economic growth on carbon emission and limiting the region of Pakistan. The studied time period of this study is 1990 to 2021. Autoregressive Distributed Lag, bound testing approach has been used to check long run relation between urbanization and carbon emission (CO2). The ARDL co-integration confirmed long run relation in the selected model. Results indicates positive relationship of urbanization, foreign direct investment and population with carbon emission (CO2) in short run, while all other variables gross domestic investment (GDP) and domestic investment (DI) are negatively linked with carbon emission (CO2). On the other hand, in case of long run, all variables are positively linked with carbon emission while domestic investment and GDP are negatively linked. Government should be implementing effective urban planning strategies to promote sustainable development. This includes designating areas for green spaces, implementing mixed land-use zoning to reduce commuting distances, and encouraging compact and walkable communities. By strategically managing urban growth, governments can minimize carbon emissions associated with transportation and energy use.
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