Determinants and Their Impact on CO₂ Emissions: A Pakistan Perspective

Abstract

The main purpose of the study is to investigate the factors influencing the Co2 emissions. The study uses the extended STIRPAT (Stochastic Impacts by Regression on Population, Affluence, and Technology) model to measure the Co2 emission. Explanatory variables are taken by the study are population(Pop), economic activity (GDP per capita), energy consumption (EC), urbanization (URB), trade openness( TO), and energy-sector composition (ESC), demand of vehicle (DV). The study uses the time sereies data over the period from 1972 to 2024 (52 years observation). The study examines long-run relationships between CO₂ emissions and its determinants using autoregressive distributed lag (ARDL) bounds testing, error-correction modeling (ECM), and multiple regression analysis. The study’s results suggest that energy consumption and urbanization are the important predictors towards the emissions. The found that demand of vehicle also the cause of Co2 emission. While EC shows non-linear effects.