Environmental Kuznets Curve hypothesis in Pakistan: Cointegration and Granger causality

Muhammad Shahbaz, Hooi Hooi Lean, Muhammad Shahbaz Shabbir

Research output: Contribution to journalReview articlepeer-review


The paper is an effort to fill the gap in the energy literature with a comprehensive country study of Pakistan. We investigate the relationship between CO 2 emissions, energy consumption, economic growth and trade openness in Pakistan over the period of 1971-2009. Bounds test for cointegration and Granger causality approach are employed for the empirical analysis. The result suggests that there exists a long-run relationship among the variables and the Environmental Kuznets Curve (EKC) hypothesis is supported. The significant existence of EKC shows the country's effort to condense CO 2 emissions and indicates certain achievement of controlling environmental degradation in Pakistan. Furthermore, we find a one-way causal relationship running from economic growth to CO 2 emissions. Energy consumption increases CO 2 emissions both in the short and long runs. Trade openness reduces CO 2 emissions in the long run but it is insignificant in the short run. In addition, the change of CO 2 emissions from short run to the long span of time is corrected by about 10% yearly.

Original languageEnglish (US)
Pages (from-to)2947-2953
Number of pages7
JournalRenewable and Sustainable Energy Reviews
Issue number5
StatePublished - Jun 2012
Externally publishedYes


  • CO emissions
  • Energy consumption
  • Trade openness

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment


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