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Impact of Industrialization on the Environment: The case study of Pakistan
Esha Noureen
Abstract:
Economic growth depends on industrial growth, which may cause a lot of strain on the environment. The research paper examines the effects of industrialization, use of fossil fuels, foreign direct investment (FDI), and use of clean or renewable energy on the ecological footprint of Pakistan. Based on the information provided by the national statistical sources available between the years 1990-2023, the Johansen co-integration regression modelling is used to empirically test the correlations between these variables and the short-run and long-run environmental quality. The results suggest that industrial production, the use of fossil fuels, and FDI lead to the higher ecological footprint, and the adoption of clean energy help in reducing the impact on the environment. These outcomes demonstrate the compromises between economic growth and the sustainability of the environment with the focus on sustainable industrial policies. The research offers practical recommendations to policy makers on how to encourage the use of renewable energy, entice environmentally friendly FDI and make provisions that would blend industrial development with environmental conservation. Through the research on the interactions between industrialization, energy consumption and FDI with ecological outcomes, the study can add to the literature on sustainable development in the developing countries and can be used to inform the policy interventions to alleviate environmental degradation and facilitate economic development.
Keywords:
Industrialization, Environmental Degradation, Ecological Footprint, Econometric Modeling, FDI, Fossil Fuels, Clean Energy, Sustainable Development, Pakistan.
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