Exploring the dynamic interaction of CO2 emission on population growth, foreign investment, and renewable energy by employing ARDL bounds testing approach

Author(s):  
Imran Hussain ◽  
Abdul Rehman
2019 ◽  
Vol 13 (3) ◽  
pp. 747-763 ◽  
Author(s):  
Abdul Rehman

Purpose The purpose of this study was to investigate the relationship between electricity access, population growth and economic growth in Pakistan. Design/methodology/approach Phillips–Perron unit root test was applied to check the stationarity of the variables and an Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was used to investigate the causality link between the study variables. Finally, a projection method was applied to check the future trend of the variables. Findings The study results show the long-term connections among the variables; further, the results illustrate that the electricity access to the urban population and the urban population growth has a significant impact on the economic growth, while the electricity access to the rural population and the rural population growth has a negative impact on the economic growth in Pakistan. Research limitations/implications The electricity sector needs further attention from the Government of Pakistan to boost the production from different energy sources, such as oil, gas, solar, nuclear and hydropower to be able to fulfill the country’s growing demand. Originality/value By using the ARDL bounds testing approach to co-integration, this study addressed the literature gap regarding electricity access, population growth and economic growth in Pakistan.


Author(s):  
Abdul Rehman ◽  
Muhammad Irfan ◽  
Sehresh Hena ◽  
Abbas Ali Chandio

Purpose The purpose of this paper is to explore and investigate the electricity consumption and production and its linkage to economic growth in Pakistan. Design/methodology/approach The authors used an augmented Dickey–Fuller unit root test to check the stationarity of the variables, while an autoregressive distributed lag (ARDL) bounds testing approach and causality test were applied to investigate the variables long-term association with the economic growth. Findings The study results show that electricity consumption in the agriculture, commercial and industrial sector has significant association with economic growth, while electricity consumption in the household and street lights demonstrate a non-significant association with the economic growth. Furthermore, results also exposed that electricity production from coal, hydroelectric, natural gas, nuclear and oil sources have significant association with the economic growth of Pakistan. Originality/value This study made a contribution to the literature regarding electricity consumption and production with economic growth in Pakistan by using an ARDL bounds testing approach and causality test. This study provides a guideline to the government of Pakistan that possible steps are needed to improve the electricity production and supply to fulfill the country demand.


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