Relationship Between Economic Growth and Environmental Degradation in Pakistan

The objective of this research paper is to study the relationship between Economic growth and Environmental degradation in Pakistan. For this purpose, we used secondary data for the period of 1984-2015 collected from different sources.Carbon Dioxide (CO2) was taken as dependent variable while agriculture growth rate, education expenditure, health expenditure, household consumption expenditure and inflation were taken as independent variables. Auto Regressive Distributed Lag (ARDL) model, ADF's Unit Root test, Error correction model and Bound test were applied to study the short- run and long-run relationship between selected variables. Our study found that Agriculture growth, education expenditure and inflation rate have positive relationship with environmental degradation while health expenditure and household consumption expenditure have negative relationship with dependent variable.