Dynamic linkages between road transport energy consumption, economic growth, and environmental quality: evidence from Pakistan

Abstract

The focus of the present research work is to investigate the dynamic relationship between economic growth, road transport energy consumption, and environmental quality. To this end, we rely on time series data for the period 1971 to 2014 in the context of Pakistan. To use sulfur dioxide (SO₂) emission from transport sector as a new proxy for measuring environmental quality, the present work employs time series technique ARDL which allows energy consumption from the transport sector, urbanization, and road infrastructure to be knotted by symmetric relationships with SO₂ emissions and economic growth. From the statistical results, we confirm that road infrastructure boosts economic growth. Simultaneously, road infrastructure and urbanization hampers environmental quality and causes to accelerate emission of SO₂ in the atmosphere. Furthermore, economic growth has a diminishing negative impact on total SO₂ emission. Moreover, we did not find any proof of the expected role of transport energy consumption in SO₂ emission. The acquired results directed that care should be taken in the expansion of road infrastructure and green city policies and planning are required in the country.

Keywords: ARDL model; Economic growth; Road energy consumption; Road infrastructure; SO2 emission.