Asymmetric Dynamics of Environmental Bearings of Trade and Energy Consumption in Pakistan

This study endeavors to investigate asymmetric bearing of energy use, composition effect, foreign trade, and economic prosperity, on the carbon dioxide emanation of Pakistan from 1970 to 2015. This study adopts nonlinear autoregressive distributed lag (NARDL) model methodology to cointegration to capture the potential asymmetries. We also incorporated asymmetric and non-asymmetric granger causality approach to analyze the causality amongst series. The empirical results indicate that energy use, economic upswing, and foreign trade are not environment friendly. The NARDL results suggest that energy efficient technologies and renewable energy should be adopted to alleviate the CO2 emissions