Assessing Pakistan's energy use, environmental degradation, and economic progress based on Tapio decoupling model

Abstract

A comprehensive assessment of energy use, environmental degradation, and economic progress can play a significant role in transition towards low-carbon economy, and it can serve as a reference for the green economic development for the rest of the developing world. The objective of this paper is to empirically investigate the current status of conventional and renewable energy use and environmental degradation. Following this, we have analyzed the decoupling relation among environmental degradation, energy use, and economic progress in Pakistan. The study adopted the comprehensive data from year 1972-2017 and applied Tapio decoupling method to explore the decoupling status of environmental degradation, energy use, and economic progress in Pakistan. The key finding from the study shows that the overall value of carbon emissions in Pakistan is relatively increasing with the passage of time and shows about 5.26% average growth rate which is creating severe environmental degradation. There were observed several fluctuations in the trend of carbon emissions which is basically due to the policy changes in the country. From the decoupling point of view, we found the decoupling linkage between energy use and carbon emissions that is growth negative decoupling, whereas a weak decoupling relation has been observed among carbon emissions and economic progress which means that in most of the year's county has achieved more economic growth compared with the carbon emissions. In addition, the similar weak decoupling relationship was found among energy use and economic progress. In the light of these findings, it is suggested to policymakers to promote technological advancement and alternate energy that will not only improve environmental quality, but it will also promote a low-carbon economy.

Keywords: Decoupling; Energy; Environment; Growth; Pakistan.