Evaluating the Nexus Between Growth and Renewable Energy Consumption on CO2 Emissions: Evidence From Pakistan

Countries make sustainable strategies to achieve sustainable development goals of the United Nations, but climate change undermines these efforts by eliminating all growth efforts. Pakistan is among those countries which has been facing climate change issues and its adverse effects on its economy in the form of billions of dollars economic loss every year. Hence, this issue needs to be explored to understand its causes and effects. The primary objective of this research is to investigate the nexus between climate change, renewable energy usage, trade openness, fossil fuels use, economic growth and C02 release in Pakistan using annual data spanning from 1990 to 2024 sourced from World Development Indicators, Pakistan Economic Survey, and State Bank of Pakistan. C02 emission is dependent variables and is proxied for environmental quality while explanatory variables include climate change, renewable energy use, trade openness, fossil fuels usage and economic expansion. The study employed Correlation Matrix and ARDL approach to estimate the relationship between climate change, renewable energy usage, trade openness, fossil fuel usage, economic growth and CO2 emissions. The findings reveal that climate change, economic expansion, fossil fuel usage, and trade openness exert significant positive impact on CO₂ emissions, whereas renewable energy use has negative effect on it, showing its positive role in environmental improvement.