Assessing the Influence of Renewable Energy Sources on CO2 Emissions: New Insights from Pakistan

Abstract

In today's global landscape, it is crucial to have a comprehensive understanding of carbon dioxide (CO2) emissions in developing nations such as Pakistan. This knowledge is vital in informing effective policymaking and promoting sustainable development. This study investigates the impact of renewable energy (RE) on environmental degradation in Pakistan from 1990 to 2021. This study utilized the renowned ARDL econometrics to analyze the impact of renewable energy consumption (REC), economic growth (EG), trade (TR), financial development (FD), energy consumption (EC) and FDI on carbon emission. The study's findings confirm the presence of a hypothesis in the case of Pakistan. Additionally, the results indicate that certain factors have a negative impact on carbon emissions while others have a positive impact. The study's findings indicate that embracing renewable energy sources, enhancing energy efficiency, and enacting legislative measures to decrease CO2 emissions are the most effective strategies for tackling climate change. Additionally, the study proposed that policymakers should prioritize encouraging and supporting using renewable energy sources in Pakistan. This involves establishing a conducive environment for investment in renewable energy projects, providing financial support, and promoting research and development in the renewable energy sector.