Sources of renewable energy have received wide attention in the literature because of serious threats to the environment. However, some renewable resources, including biomass energy role is debatable in the energy economics literature. This empirical work focuses to analyze the role of biomass energy in carbon dioxide (CO2) emissions using the framework of the environmental Kuznets curve (EKC) in Pakistan over the period from 1980 to 2015. The bound testing approach suggests there is cointegration among study variables. The study uses an auto-regressive distributed lag model (ARDL) with a structural break in the series. To summarize the findings of the study, it can be inferred that biomass energy increase CO2 emissions. In addition, biomass energy helps to form a U-shaped relationship between income and CO2 emissions that support the EKC hypothesis. Also, the feedback hypothesis is found between biomass energy and CO2 emissions. The findings would guide policymaker with practical guidelines to formulate policies to utilize a high amount of biomass energy in a sustainable manner.
Keywords: ARDL; Biomass energy; CO2 emissions; Pakistan; Structural break.