Analysis of asymmetries in the nexus among clean energy and environmental quality in Pakistan

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RESEARCH ARTICLE

Analysis of asymmetries in the nexus among clean energy and environmental quality in Pakistan Ahmed Usman 1 & Sana Ullah 2 & Ilhan Ozturk 3 & Muhammad Zubair Chishti 2 & Syeda Maria Zafar 4 Received: 25 December 2019 / Accepted: 9 March 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract This study examines the short-run and long-run asymmetric effects of clean energy consumption on carbon emission in Pakistan, over the annual time period 1975–2018, by using a non-linear ARDL approach. The findings of the study confirm the existence of asymmetries, in the nexus between the clean energy consumption and carbon emission in the short and long run. The findings of non-linear model confirm that carbon emission responded contrary to positive shocks of energy variables as compared with their negative shocks. Asymmetric findings recommend that positive and negative shocks of the alternative and nuclear energy and combustible and waste energy have affected differently. Although, short- and long-run results suggest an insignificant positive and negative relationship between electric power consumption and carbon emissions. Therefore, more taxation of non-renewable energy and clean energy supports are suggested for the Pakistan economy. We concluded that Pakistan has potential in clean energy which will improve environmental quality in the near future. Keywords Clean energy . Nuclear energy . Renewables and waste energy . CO2 emissions . Non-linear ARDL . Pakistan

Introduction In Pakistan, urbanization and growth of the population have led to energy demand. This tendency has also been observed Responsible editor: Muhammad Shahbaz * Sana Ullah [email protected] Ahmed Usman [email protected] Ilhan Ozturk [email protected] Muhammad Zubair Chishti [email protected] Syeda Maria Zafar [email protected] 1

Department of Economics, Government College University Faisalabad, Faisalabad, Pakistan

2

School of Economics, Quaid-i-Azam University, Islamabad, Pakistan

3

Faculty of Economics and Administrative Sciences, Cag University, 33800 Mersin, Turkey

4

Institute of Geographical Information System, School of Civil & Environmental Engineering, NUST, Islamabad, Pakistan

in the last few decades in Pakistan. However, in order to get sustainable economic growth, the demand for energy is quite high which has threatened the natural environmental balance (e.g., global warming, deforestation, air pollution, and water pollution) in Pakistan. The growing level of unclean energy consumption in Pakistan has led to initiate an investigation of its impact on carbon emissions that may contribute to global warming because the mode in which we consume energy impacts society’s environmental quality. Moreover, macroinstability and oil shock of 2008 affect the price of fuels and increasing greenhouse gases inspired to find clean energy sources including nuclear, biomass and biofuel, and electric power energy. Therefore, the Pakistan government has been following environmental po