Physical infrastructure, energy consumption, economic growth, and environmental pollution in Pakistan: an asymmetry anal
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RESEARCH ARTICLE
Physical infrastructure, energy consumption, economic growth, and environmental pollution in Pakistan: an asymmetry analysis Muhammad Afaq Haider Jafri 1 & Huizheng Liu 1 & Muhammad Tariq Majeed 2 & Waheed Ahmad 2 & Sana Ullah 2 Rui Xue 1
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Received: 19 October 2020 / Accepted: 22 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract This study explores the symmetric and asymmetric effects of physical infrastructure on energy consumption, economic growth, and air pollution of Pakistan over the period 1990–2019. The ARDL results for the energy consumption model suggest that aircraft carriers (ACC) and road infrastructure foster energy consumption in the short term. For the growth model, the impact of trade is negative and significant in both short run and long run. The results for environmental pollution model suggest that information communication technology (ICT) is positively associated with CO2 emissions, whereas trade is negatively associated with emissions in the short and long run. The road has a positive impact on CO2 emissions while ACC has a negative impact in the long run. The nonlinear ARDL results reveal that negative component of ICT negatively influences energy consumption, while positive component has insignificant impact. Similarly, ACC, road, and trade also exhibit asymmetric effects. ICT has a significantly negative impact on economic growth. Finally, the positive shock to road has a significantly positive impact on pollution but the negative shock has no impact. Additionally, the coefficient of ACC and trade also infer asymmetries in pollution model. The results offer important policy implications for achieving high growth and better environmental quality in Pakistan. Keywords Physical infrastructure . Energy consumption . Economic growth . Environmental pollution . Pakistan
Introduction Responsible editor: Nicholas Apergis * Sana Ullah [email protected] Muhammad Afaq Haider Jafri [email protected] Huizheng Liu [email protected] Muhammad Tariq Majeed [email protected] Waheed Ahmad [email protected] Rui Xue [email protected] 1
College of Economics and Management, Beijing University of Technology, Beijing, China
2
School of Economics, Quaid-i-Azam University, Islamabad, Pakistan
The investment in infrastructure is an important determinant of economic growth and development. Many empirical studies confirm the positive effects of an investment in infrastructure on economic growth using different econometrics approaches and samples (Pereira and Andraz 2005; Baltagi and Pinnoi 1995; Holtz-Eakin 1994; Bougheas et al. 2000; Munnell 1990). However, one group of studies suggests that the effects of infrastructure investment on economic growth depend upon the domestic conditions of the economies such as institutional quality, political involvements, and infrastructure development techniques influence growth effects of infrastructure investment (Warner 2014; Ghosh and De 2004; Canning and Pedroni 2004). Physical infrastructure i
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