Environmental Degradation and Economic Development Nexus in Pakistan: A Time Series Analysis

Abstract

The cost of natural resource depletion is creating alarming
situation for future generations in developing economies like
Pakistan. Therefore, the current work is analyzing the relationship
of economic evolution and environmental degradation in Pakistan.
Johansen Co-integration used to examine the association between
economic enlargement and environmental dilapidation in
Pakistan. A time series data analyzed for the phase from 1972 to
2010. For this purpose, Carbon dioxide intensity used as
environmental indicator while gross fixed capital as economic
growth indicator. The empirical outcomes suggested that economic
expansion has affirmative and significant contact with ecological
imbalance for the case of Pakistan. Study suggested that economic
expansion at the cost of environmental degradation in not
affordable at long run and could be harmful for future generation.
A “win-win” policy should adapt to make economic growth with
protected environment.