Scrutinizing Impact of Macroeconomic Indicators On Climate Change in Pakistan

Abstract

The study examines the effects of macroeconomic indicators on climate change in Pakistan through Autoregressive distributed lag (ARDL) bounds testing approach. The results, based on the data range of 1973 to 2013, support inverted U shaped relationship between climate change and development. Opposite results are found on trade openness and energy consumption on the environment. Moreover, urban population, financial development, and employed labor force have positive impact on climate change in Pakistan. This study has opened up new insights for policy makers so as to formulate a comprehensive outlook towards that of climate changes in respect of macroeconomic indicators.