Impact of climate change shocks on economic growth: A new insight from non-linear analysis

Abstract

Despite the fact that Pakistan’s contribution to GHG emissions is low (0.8%) when compared to other countries but it is one of the hardest hit by climate change. The present study is an attempt to identify the impact of climate change on economic growth. The non-linear autoregressive distributional lag (NARDL) technique is used to estimate the asymmetric effect of climate change on the economic growth of Pakistan. Annual data covering the years 1980–2021 are used for empirical analysis. It is noteworthy to reiterate that CO2 emissions and mean temperature pose asymmetrical results concerning economic growth, both in the long-run and short-run. CO2_POS and CO2_NEG have a negative impact on economic growth, whereas MEANT_POS has a positive impact on economic growth and MEANT_NEG has a negative impact. Precipitation has a positive and significant long-term influence on economic growth. Research findings indicate that comprehensive mitigation policies at the nationwide and worldwide levels are required to limit human-caused climate change in Pakistan. At national level, tree planting projects and safeguard greenery at all costs while at international level, policies needed for adoption of mitigation strategies to control climate change.

An autoregressive distributed lag approach for estimating the nexus between CO2 emissions and economic determinants in Pakistan

“…The average economic growth stands at more than 6%, while in the 1990s, it was below 4%, whereas GDP growth was around 4% from 2000 to 2010 [ 62 ]. The government should establish hydro projects and construct eco-friendly energy-related projects with renewable energy sources [ 63 , 64 ]. The Pakistan government should embark on responsible electricity production from coal sources.…”

“…Moreover, the government should encourage industries to import and export eco-friendly technologies and provide them tax exemptions that follow these rules [ 63 , 64 ]. A nationwide awareness programme on planting more trees in all areas should be the goal of the government.…”

“…A nationwide awareness programme on planting more trees in all areas should be the goal of the government. Clean environmental products like Photo-voltaic solar cells, wind power generating sets, and hydro turbines should be made duty-free and subsidized for all [ 63 , 64 ]. The government should provide the private and agriculture-based industries in the energy sector with special incentives and tax exemptions, etc.…”

The prioritization of solutions for reducing the influence of climate change on the environment by using the conception of bipolar complex fuzzy power Dombi aggregation operators

“…Im et al (2022) discussed climate change and air pollution. Khurshid et al (2022) studied the influence of climate change on economic development. Dong et al (2023) used the integrated fuzzy decision technique to study digital green innovation investment project selection of photovoltaic building material enterprises.…”

Asymmetric effect of educational expenditure, knowledge spillover, and energy consumption on sustainable development: Nuts and Bolts for policy empirics

“…Despite increased demand for renewable energy, numerous countries continue to rely on fossil fuels to boost their economic prospects [ 41 ]. Increasing crude oil prices are harmful to the environment because they encourage the development and transportation of fossil fuels.…”