The largest challenge still remains in enhancing the living conditions and economic progress, while growing the environmental footprint is related to energy. The move towards renewable sources means that energy utilization can be increased and environmental impacts reduced. The key purpose of the present analysis was to investigate the CO2 emissions interaction to industrialization, energy imports, carbon intensity, economic progress, and gross capital formation by using time span data ranging from 1971 to 2019. Variable stationarity was confirmed by utilizing the unit root tests, while quantile regression analysis was utilized to check the CO2 emission influence on the independent variables. Outcomes showed that industrialization has constructive influence with CO2 emission having coefficient (0.161636) with probability value (0.0000). Similarly the variable energy imports, carbon intensity, and gross capital formation have positive coefficients (0.206843), (0.895212), and (0.442922) with probability values (0.2171), (0.0004), and (0.0002) correspondingly that exposed the positive interaction with CO2 emission in Pakistan. The variable economic progress exposed an adverse impact to CO2 emission with having coefficient (-0.002841) with probability value (0.8795). In directive to improve the economic progress, the government of Pakistan should take future action to minimize carbon dioxide emission from different sectors that cause the climate change.
Keywords: CO2 emission; Economic progress; Energy imports; Environmental pollution; Quantile regression.
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.