Impact of Renewable and Non-Renewable Energy Consumption on Environmental Quality: Evidence from Pakistan

This research examines the interplay between renewable energy consumption and environmental quality in Pakistan, emphasizing sustainable development strategies. Using an empirical framework that combines a Correlation Matrix and the Auto-regressive Distributed Lag (ARDL) model, the study used annual time series data from 1991 to 2023. Carbon dioxide (CO₂) emissions are the key environmental quality indicator, with independent variables comprising renewable and non-renewable energy consumption, foreign direct investment (FDI), GDP per capita, and inflation. The key findings indicate a significant long-term inverse relationship between renewable energy consumption and CO₂ emissions. In contrast, non-renewable energy consumption shows a strong positive association with CO₂ emissions. FDI marginally worsens environmental quality, whereas GDP per capita and inflation exhibit negative correlations with CO₂ emissions, reflecting intricate economic-environmental dynamics.