Analysis of asymmetries in the nexus among clean energy and environmental quality in Pakistan

Abstract

This study examines the short-run and long-run asymmetric effects of clean energy consumption on carbon emission in Pakistan, over the annual time period 1975–2018, by using a non-linear ARDL approach. The findings of the study confirm the existence of asymmetries, in the nexus between the clean energy consumption and carbon emission in the short and long run. The findings of non-linear model confirm that carbon emission responded contrary to positive shocks of energy variables as compared with their negative shocks. Asymmetric findings recommend that positive and negative shocks of the alternative and nuclear energy and combustible and waste energy have affected differently. Although, short- and long-run results suggest an insignificant positive and negative relationship between electric power consumption and carbon emissions. Therefore, more taxation of non-renewable energy and clean energy supports are suggested for the Pakistan economy. We concluded that Pakistan has potential in clean energy which will improve environmental quality in the near future.