EKC ANALYSIS FOR VARIOUS AIR CONTAMINANTS IN PAKISTAN

Abstract

This manuscript empirically studies the association between economic growth and environmental scarcity for a developing nation, Pakistan, through the era 1970–2018. The study is prepared for the environmental Kuznets curve (EKC) theory by applying cointegration analysis. Different air pollutants (CO2, CO, NOx, PM10 and SO2) are considered as the environmental variants, and GDP as an economic indicator. Using the ARDL bound test method, the results show that there is a long run cointegrating relation in some variables and that it does not exist in others. An inverted U-shaped linkage between pollution and economic evolution has been found in some pollutants. This implies that emission reduction policies and additional investments in pollution reduction will not disrupt economic growth and may be a realistic policy plan for the host country to achieve long-term ecological development. 

Keywords: environmental Kuznets curve, air pollutants, ARDL cointegration, economic growth, ecological development