IMPACT OF PRIVATE VEHICLE OWNERSHIP AND URBANIZATION ON CARBON EMISSIONS: CASE OF PAKISTAN

Author(s) : Faiza Azam, Afia Mushtaq and Irem Batool

Abstract:

A prominent contributor of emissions from carbon dioxide (CO2) is the transportation sector that accounts for nearly one-fifth of global carbon emissions. This study aims to investigate the impact of private vehicle ownership, foreign direct investments (FDI) and urbanization on CO2 emissions in Pakistan, using data from 1991 to 2020. The study considers the IPAT framework and applied the ARDL model to examine the short-term and long-term effects of private vehicle ownership, FDI, and growth in the urban population on CO2 emissions in Pakistan. The study findings showed a positive and significant nexus between CO2 emissions, private vehicle ownership, FDI, and growth in the urban population of Pakistan. It was estimated that an increase in private vehicle ownership, along with urbanization, will lead to increased CO2 emissions, and in the same way, FDI contributes to environmental degradation as it promotes more industrial activities that are usually based on fossil fuel consumption. The study, therefore, puts into perspective the need for sustainable policies to manage such environmental impacts of these factors. This provides major pointers to the policymakers in Pakistan with respect to the integration of strategies required to be counseled on the environmental consequences of private vehicle ownership, FDI, and urbanization.