INVESTIGATING THE SIGNIFICANT IMPACT OF COAL CONSUMPTION, COAL PRODUCTION, AND COAL IMPORTS ON CO2 EMISSIONS IN PAKISTAN

Abstract

Reliance on coal based energy sources has substantially increased in last decade due to severe energy shortages in Pakistan. This study evaluates the impact of coal consumption, coal production and coal imports on the carbon emissions by using time series data. The data were obtained from EDGAR and economic survey of Pakistan published by ministry of finance in annual frequency. The data for a period spanning over twenty years from 2001 to 2022 were analyzed employing ARDL bounds testing approach. The findings reveal a significant impact of the explanatory variables on carbon emissions scaled by GDP. Further, granger causality test proved a unidirectional impact of coal consumption and coal import on carbon emissions. Policy recommendations and suggestions are made based on the reported results to tackle the impact of carbon emissions on ecological footprints in an emerging economy.