Role of Renewable Energy Resources in Environmental Quality in Pakistan

This study analyzes the role of renewable resources in influencing the environmental quality in Pakistan using time series data of Pakistan from 1990 to 2021. For estimation, Augmented- Dickey Fuller test, bound test and ARDL model is used. ARDL model is used when variables in a model are integrated at mixed order. Environmental quality is proxied by using CO2 emissions and renewable energy sources are proxied by using renewable energy consumption and renewable electricity generation. The main outcomes suggest that the variables renewable energy consumption and renewable electricity output are significantly related to the environmental quality. The results also demonstrates that the variables industrialization, gross fixed capital formation, and fossil fuel energy consumption are positively related to CO2 emissions while the variables human capital and final consumption expenditures are negatively related to the CO2 emissions in Pakistan. Results imply that any policy intended to promote the use of renewable energy will benefit Pakistan's environmental quality.