Determinants of Air Pollution: An Economic Perspective

Ali Kakar, Bilal Sarwar

Abstract


The objective of this study was to explore the economic determinants of air pollution. The study analyzed the effect of energy consumption, population growth, trade openness, and Foreign Direct Investment (FDI) on air pollution in Pakistan using time series data for the period of 1960 to 2008. This study was conducted through the log-log model of Multiple Linear Regression (MLR) analysis. The empirical results of this study suggests that all the predictors taken in the study are significant at a 5 % level of significance, while energy consumption is the most significant determinant in the emissions of carbon dioxide (CO2) in Pakistan which is followed by population growth, foreign direct investment and trade openness.

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