Investigating the Link Between Income Growth and Carbon Footprints of Production: A Case Study on Pakistan

Abstract

This paper looks at the production footprints of Pakistan by decomposing aggregated environmental pressure into product-specific environmental pressure for the investigation of the nexus between environmental quality and technological development with increasing economic growth over time. The study is based on secondary data for 38 years, which is taken from the Pakistan Economic Survey. Key to this investigation is the utilization of product-specific standards provided by the Global Footprint Network, which are instrumental in quantifying the ecological footprints associated with Pakistan's production activities. The study has used the ARDL bound testing method to estimate the short-term and long-run relationship between environmental quality technological development and economic growth. The empirical findings disclose a non-linear association between the ecological footprints generated by production activities and the level of technological development in Pakistan. Notably, the results indicate that technological advancements play a crucial role in mitigating environmental pressures over time, particularly as the economy undergoes growth. This underscores the significance of technological innovation as a means to alleviate environmental burdens amidst the backdrop of economic expansion. Better technology helps to offset the environmental pressure over time.