The trade-off between economic growth and environmental quality: does economic freedom asymmetric matter for Pakistan?

Muhammad Tariq Majeed, Zhiyuan Yu* (Corresponding Author), Adnan Maqbool, Mesfin Genie, Sana Ullah* (Corresponding Author), Waheed Ahmad

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This empirical study investigates the dynamic effects of economic freedom on economic growth and air quality for Pakistan over the period 1990–2019. The ARDL results suggest that economic freedom and other variables do not have any visible impact on economic growth and pollution in the short-run. However, in the long-run, economic freedom significantly mitigates air pollution whereas inflation instability increases emissions. The NARDL results show that a partial sum of positive change in economic freedom is negatively linked with economic growth in the short term but has positive effect in the long term. However, the negative change in economic freedom has negative but insignificant impact on growth confirming asymmetric effects. The results for the pollution model show that a partial sum of positive change in economic freedom has positive impact on emissions both in the short and long-runs, whereas a negative change has no significant effect in the short-run and has negative impact in the long-run. Thus, economic freedom supports economic activities that, in turn, escalate emissions in the atmosphere.
Original languageEnglish
Pages (from-to)41912-41921
Number of pages10
JournalEnvironmental Science and Pollution Research
Volume28
Issue number31
Early online date1 Apr 2021
DOIs
Publication statusPublished - Aug 2021

Keywords

  • economic freedom
  • economic growth
  • air quality
  • Pakistan

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