Dynamic linkage between industrialization, energy consumption, carbon emission, and agricultural products export of Pakistan: an ARDL approach

Abstract

This study aims to contribute to the literature and examine the causal relationship between Pakistan’s agricultural products export, industrialization, urbanization, transportation, energy consumption, and carbon emissions. For the last four decades, time-series data were used to employ short-run and long-run nexus between the selected variables by analyzing the autoregressive distributed lag model (ARDL). The Granger causality test was analyzed to estimate the causality directions. The unit root test results indicate that all the selected variables are stationary at the level and first difference. The bound test confirmed that all variables are cointegrated at a 1% significance level. Long-run estimates suggest that an increase in energy consumption will increase the export of agricultural products. An increase in urbanization, transportation, and carbon emission resulted in a decrease in agricultural products export in Pakistan. In the short run, an increase in industrialization, transportation, and energy consumption leads to an increase in agricultural products export. Increasing urbanization and carbon emission decrease the agricultural products export of Pakistan. Based on our findings, we recommend sustainable agricultural production, renewable energy consumption, low carbon emission technologies, and a green portfolio for sustainable agricultural products export.

The relationship between renewable energy consumption, carbon emissions, output, and export in industrial and agricultural sectors: evidence from China

“…This shows that CO 2 emissions promote the development of China’s industry and agriculture, but also hinder the development of renewable energy. Our findings do not support the papers of Khan et al ( 2021a ), who put forward that the increase in carbon emission brings climate change and results in the decline of product export but agrees with Khan et al ( 2019 ).…”

Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

“…Ibrahim and Ajide ( 2021b ) for G7 nations; ZA. Khan et al ( 2021b ) for Pakistan; and Udeagha and Breitenbach ( 2021 ) for the SADC region back up our findings. However, our findings contradict those of Ding et al ( 2021 ), who claim that trade openness helps G7 economies improve environmental quality.…”

Effect of Economic Indicators, Renewable Energy Consumption and Human Development on Climate Change: An Empirical Analysis Based on Panel Data of Selected Countries

“…However, as for renewable energy and HDI, they only have a positive impact on HDI in low and medium frequencies. This is in line with Shahbaz et al (2017) (Shahbaz et al, 2017), Kaya et al (2017) (Kaya et al, 2017) and Khan et al (2021) (Khan et al, 2021) studies and argues that economic growth positively affects human development, but FDI and trade openness hinders human development in the country. On the basis of this research, Sasmaz et al (2020) (Sasmaz et al, 2020) have examined the relationship between renewable energy and human development in 28 OECD countries from 1990 to 2017.…”

“…In addition, it has also noticed that renewable energy consumption and trade openness have a continuous negative impact on CO 2 emissions, but the reduction of CO 2 emissions by renewable energy consumption is minimal, which is also in line with the current basic status quo of economic development in lower-middle-income countries. For example, most of Pakistan's population mainly relies on agriculture, but the government's excessive reliance on industrial development has led to a sharp deterioration in the environment, prompting trade openness to curb the increase in CO 2 emissions and also hindering human development, is in line with Wang et al (2018) (Wang et al, 2018), Khan et al (2021) (Khan et al, 2021) and Belaïd et al (2019) (Belaïd and Zrelli, 2019). However, this study also confirms the inverted-U shaped relationship between trade openness and CO 2 emissions for the lower middle-income countries is in line with Shahbaz et al (2017) (Shahbaz et al, 2017), this also shows that trade increase environmental degradation at initial stage but then it starts to improve environmental quality after a certain threshold level of trade openness, just as is also established by our study.…”