The effect of climate change on economic growth: evidence from Pakistan

  • Sajjad Ali College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
  • Liu Ying College of Economics & Management Huazhong Agricultural University Wuhan 430070 P.R China / Hubei Collaborative Innovation Center for Grain Industry, Yangtze University, Jingzhou
  • Abdullah College of Economics & Management Huazhong Agricultural University Wuhan 430070 P.R China
  • Adnan Nazir College of Economics & Management Huazhong Agricultural University Wuhan 430070 P.R China.
  • Adnan Nazir College of Economics & Management Huazhong Agricultural University Wuhan 430070 P.R China.
  • Muhammad Ishaq Agricultural Pricing and Trade Policy, Social Sciences Division, Pakistan Agricultural Research Council, Islamabad.
  • Tariq Shah : Department of Economics & Development Studies, University of Swat, Khyber Pakhtunkhwa 19130, Pakistan.
  • Aasir Ilyas College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
  • Arshad Ahmad Khan College of Economics and Management Northwest A&F University
  • Izhar Ud Din College of Economics and Management, Huazhong Agricultural University
  • Azam Tariq College of Humanities and Social Sciences, Huazhong Agricultural University
Keywords: Climate Change, Pakistan, Economic growth, ARDL

Abstract

This study is a contribution to empirics of climate change and economic growth in Pakistan. This study considered annual data from 1980 to 2013. This study intends to use the gross domestic product (GDP) per capita in current US Dollars. The proxy used for investment is gross fixed capital formation (GFCF). The data of GFCF is in a total amount in US Dollars. The TRADE data is in total trade in one year as a percentage of GDP. The data of CO2 is in total carbon dioxide emissions (kt). We performed auto regressive distributed lag (ARDL) bound testing design to measure long run as well as the short-run association of climate change with economic growth. The notable finding suggests that CO2 significantly affect the economic growth. In addition, economic growth is also significantly affected by temperature. Such results highlight that CO2 and TEMP adversely affect the economic growth of Pakistan. There is the positive but minimal impact of RAIN on economic growth of Pakistan. The notable finding suggests that CO2 which was significant negative in long run has an insignificant effect in short run of Pakistan. However, the coefficient of CO2is still negative in short run.

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Published
2019-04-15
How to Cite
[1]
Sajjad Ali, “The effect of climate change on economic growth: evidence from Pakistan”, pij, vol. 2, no. 2, pp. 21-30, Apr. 2019.
Section
Articles