DETERMINING THE ROLE OF ENERGY CONSUMPTION AND AIR POLLUTION ON PAKISTAN’S ECONOMIC GROWTH: APPLICATION OF AUTOREGRESSIVE DISTRIBUTIVE LAG MODEL (ARDL)

Abstract: The goals of the study are to observe the impact of energy consumption, CO2 emission on Pakistan’s economic growth by using and annual time series data from 1980 to 2016.  The Auto regressive lag distributive (ARDL) model is applied to find out the correlation between the variables. The short run elasticity shows that CO2 emission, fossil fuel and hydro energy consumption decreases Pakistan’s economic growth, while nuclear energy consumption and electric power consumption substantially increases GDP per capita of the country. In the long run, nuclear energy consumption and electric power generation support country’s economic growth, which need more friendly environmental policies to reduce high mass carbon emissions in a country.