Investments in Energy Conservation: Policy Implications for Pakistan

Saba Anwar, Hafsa Hina, Fahad Sultan, Muhammad Ibrahim Khan, Muzaffar Abbas, Perfecto G. Aquino

Abstract


The paper investigates the impact of energy investment on economic growth for Pakistan using Solow model. The energy is introduced as factor input in the Solow growth model along with physical capital, labor and human capital and some other policy variables. The period of analysis ranges from 1970 to 2018. The Autoregressive Distributed Lag (ARDL) approach confirms that energy investment contributes positively to economic growth both in the short and the long run along with trade openness. The study provides an important policy recommendation that government should encourage the investment activities in energy sector to meet the rising energy demand which in turn stimulates economic growth.

Keywords: Energy Investments, Economic Growth, ARDL.

JEL Classifications:  O47, O13, Q43

DOI: https://doi.org/10.32479/ijeep.9704


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