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Title Assessing the Impact of Energy Poverty on CO2 Emission in Pakistan

Author(s) Mr. Muhammad Bilal

Abstract Energy poverty as an issue was raised in the late 20th century at global level then policymakers, international organizations, and researchers focused on it. The accessibility as well as affordability to clean energy services are the key factors towards sustainable economic growth. If a society has no access to clean energy sources, then there may be supply constraints. On the other hand, if a society is unable to afford clean energy sources, then there may be constraints on the demand side. In a nutshell constraint on demand and supply sides create energy poverty. In the same vein, present study tries to estimate energy poverty by utilizing various demand and supply side indicators in a multidimensional index approach. Further, three dimensions and fourteen indicators to measure energy poverty are used. Energy poverty dimensions are namely, energy services, clean energy, and energy affordability and uses equal weight strategy for three dimensions. The value of energy poverty index shows that overall energy situation improves and experienced a reduction in energy poverty in the entire period. At the second stage, study finds the impact of energy poverty and economic output on the CO2 emissions in the Pakistan economy over the period of 1990s to 2019. On the basis of unit root tests Johansen Cointegration technique is used to find the long run dynamic relationship. The results of Johansen Cointegration show a statistically significant long run relationship between energy poverty and CO2 emissions and does not hold the same relationship in the short run. Moreover, present study also uses GDP and GDP square terms in the model along with energy poverty to confirm the Environmental Kuznets Curve (EKC). EKC is basically a long run phenomenon so, in the short run GDP and square term of GDP are not statically significant. The government must give attention to increase the share of renewable energy in total energy mix. Keywords: CO2, Energy Poverty, Multidimensional Index, Gross Domestic Product, EKC, Johansen Cointegration, ADF

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2022-07-29

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