Impact of Urbanization and Usage of Green Energy Sources on Environmental Decline in Pakistan

This study aims to investigate the impact of urbanization, green energy and economic growth on environmental footprints using 24 years data from 2000 to 2024 and employing various econometric techniques such as ARDL approach and associated tests. Extensive research has been conducted globally on these relationships but there is still gap in understanding the nature of empirical links among these variables. This research addresses that gap by conducting a country-specific analysis using the Autoregressive Distributed Lag (ARDL) model, Correlation Matrix and associated diagnostic tests. The findings predict the negative impact of urbanization, green energy consumption and economic growth on CO2 release and positive impact on environmental quality, supporting the Environmental Kuznets Curve hypothesis. The analysis found a significant role in promoting the balanced environment of green energy consumption, urbanization and economic growth. The analysis suggests that policymakers should promote green energy usage by fiscal incentives and subsidies to reduce the reliance on traditional energy sources.