Measuring the Impact of Globalization on Environmental Degradation in Pakistan

Abstract

The study was aimed to investigate the impact of globalization on environmental degradation in Pakistan for the period 1990-2024. Stationarity test Augmented Dickey-Fuller and Phillips-Perron are employed to the order of stationarity. For estimation of the parameters of the model Auto-Regressive Distributed Lags approach is employed. Bound Test reported that there is long run relationship between the variables of the model. Long run results showed that globalization affect negatively and significantly environmental degradation, which means that globalization improves environmental quality through technological diffusion and the adoption of cleaner production practices. In contrast, population density has a positive and significant impact on environmental degradation, implying that higher population concentration increases carbon dioxide emissions and worsens environmental quality. Similarly, economic growth is found to have a positive and statistically significant long-run effect on environmental degradation, indicating that the process of economic expansion in Pakistan has been accompanied by increased energy consumption, industrial activities, and carbon emissions, thereby exerting pressure on environmental quality. Furthermore, poverty exhibits a positive and significant impact on environmental degradation, suggesting that higher poverty levels encourage the unsustainable exploitation of natural resources, reliance on environmentally harmful practices, and limited adoption of cleaner technologies. Based on these outcomes of the study, it is suggested that globalization, population dynamics, economic growth, and poverty should be paid special attentions regarding environmental policy formulation to provide clean and quality environment to the residents of the nation. It can be possible by Promoting environmentally sustainable technologies through globalization, implementing effective population dynamics, encouraging green economic growth, and reducing poverty through inclusive development are essential for achieving long-term environmental sustainability in Pakistan.