The transportation sector consumes 25% of world energy with 23% of the world's total carbon emission. Therefore, it is necessary to investigate the integrated effect of fossil fuel source of energy consumption, economic development, and total population on CO2 emission based on environmental degradation transportation sector. We employed the econometric methodologies such as a hybrid error correction model, regression coefficients, platykurtic distribution, Dickey-Fuller test, and co-integration test in order to justify empirical analysis for Pakistan transport sector. Results reveal that an increase in economic growth, urbanization, and energy consumption increased transport-based environmental degradation urbanization. Moreover, very interestingly, during this period, energy consumption has increased by 13.5%, and it shows a high dependence of economic growth on energy consumption. Further, the CO2 emission and energy consumption per capita has a positive relationship. Finally, this study has proposed some suggestion for policy and decision-makers to mitigate environmental degradation as well as make transport sector environmentally sustainable.
Keywords: Economic development; Energy consumption; Environmental degradation; Population growth; Transport-based CO2.