IMPACT OF SUSTAINABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN
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ID: 312117
2025
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Abstract
Does sustainable energy consumption influence economic growth in Pakistan? To investigate this question, we used an econometric model in which GDP calibrates economic growth as dependent variable, while Renewable Energy Consumption (REC) represents sustainable energy consumption as primary explanatory variable. Gross capital formation, carbon dioxide emissions, electricity power consumption, FFEC, and electricity production from nuclear sources are incorporated as control variables. We use WDI and Economic Survey of Pakistan (ESP) to extract relevant data of Pakistan during 1990-2020 period. The ADF unit root test reveals that all variables, except for CO2 emissions, are stationary at first difference. An ECM model was utilized to investigate the short-run relationship. For long-run relationships, the ARDL model was employed. We find that renewable energy consumption is statistically significant and associated with higher economic growth levels in both shorter and longer time windows. Similarly, the outcomes also depict that CO2 emissions, and electricity production from nuclear sources (EPNS) also positively associated with Pakistan's GDP. In contrast, gross capital formation has had a decreasing relationship with GDP. Lastly, the effect of electricity power consumption (EPC) and FFEC fail to remain significant in long-run. Keeping in view the outcomes, it is concluded that sustainable energy resources are crucial to improve the economic growth of Pakistan.
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imported_1776681180_69e600dc59388
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| Authors | Mahmood ul Hasan, Hassan Farooq, Muhammad Nauman Malik |
| Journal | Social Sciences & Humanity Research Review |
| Year | 2025 |
| DOI |
10.63468/sshrr.311
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| URL | |
| Keywords | Keywords not found |
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