Manuscript Title:

DOES HUMAN DEVELOPMENT INFLUENCE ENERGY INTENSITY IN PAKISTAN? AN EMPIRICAL INSIGHT

Author:

ABDUL SHAKOOR, KHALID KHAN, MUHAMMAD ALI KAKAR, ASIFULLAH KHAN

DOI Number:

DOI:10.5281/zenodo.10612425

Published : 2024-01-23

About the author(s)

1. ABDUL SHAKOOR - PhD Scholar, Department of Economic, University of Karachi, Sindh, Pakistan.
2. KHALID KHAN - PhD Scholar, Applied Economics Research Center University of Karachi, Sindh, Pakistan.
3. MUHAMMAD ALI KAKAR - Assistant Professor, Department of Economics, Balochistan University of Information Technology, Engineering and Management Sciences (BUITMS), Pakistan.
4. ASIFULLAH KHAN - Lecturer, Department of Economics, University Charsada, Pakistan.

Full Text : PDF

Abstract

Over the past three decades, energy efficiency has become a central topic in global discussions, influencing economic interests and impacting various aspects such as energy, economics, social factors, environmental considerations, and national security. The determinants of changes in energy efficiency, including human development and the global shift in energy intensity, have gained prominence in debates at political, research, and scientific levels. This research shows that inefficient use of energy plays a dominant role in increasing the energy intensity in a country. The well- known co-integration techniques of ARDL and ARDL bound test have been used to investigate the Impact of Human development on Energy Intensity in Pakistan. The finding of study indicate that Higher Human Development (Education Level) is strongly and negatively associated with Energy Intensity, signifying that increased education levels lead to a substantial reduction in energy intensity and improve the efficiency of energy use in the economy. Foreign Direct Investment (FDI) demonstrates a noteworthy negative relationship with energy intensity, indicating that as FDI rises, there is a significant decrease in energy consumption per unit of output. Surprisingly, Trade Openness (TRO) shows a positive correlation with Energy Intensity, challenging traditional economic expectations. However, the study emphasizes the need for strategic measures to enhance energy efficiency and harmonize international trade with sustainable practices. The research also underscores a substantial negative relationship between exports (EXP) and Energy Intensity, suggesting economic growth potential through increased exports alongside energy efficiency. To reduce energy intensity in Pakistan, prioritize education for sustainable practices, attract Foreign Direct Investment (FDI) by streamlining regulations and promoting energy-efficient technologies, and implement strategic trade policies that balance economic gains with environmental considerations.


Keywords

Energy Intensity, Human Development, ARDL and Pakistan.