Abstract
This study investigates the Carbon dioxide emission-urbanization-growth nexus in
Pakistan by taking time series data from the period of 1972 to 2013. The study applied three
approaches of co-integration (ARDL bounds test, Johansen and Juselius and Gregory and Hansen
structural break test) to confirm the valid long-run positive interaction between carbon dioxide emission and urbanization. The robustness of cointegrating vectors are further checked using FMOLS
and DOLS tests and the results validate the long-run coefficients. The results of VDM exhibit the
uni-directional causality between carbon dioxide emission and urbanization running from urbanization to carbon dioxide emission. It was therefore noted that policies in which the government needs
to allocate greater portion to environmental safeguard and energy saving components in the planning, such as encouraging energy saving framework and creating a chain of increasing indicators
of environmental protection and energy saving.
Arshian Sharif, Syed Ali Raza. (2016) Dynamic Relationship between Urbanization, Energy Consumption and Environmental Degradation in Pakistan: Evidence from Structure Break Testing, Journal of Management Sciences, Volume 3, Issue 1.
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