Analysis of environmental sustainability and economic development from electricity consumption based on the modified spatial Durbin model

The study investigates the impacts of financial development, electricity use, and technology innovation on CO2 emissions. International trade also plays an essential role in the economic development of Pakistan. Studying the relationship between ecological parameters, technological innovation, electricity use, and CO2 emissions is necessary to formulate the country's reasonable and practical energy policies. Based on the study's use of data from 292 Pakistani firms from 2006 to 2021, the paper investigates the mechanism of the role between financial development, electricity use, technological innovation, international trade, and CO2 emissions using the spatial Durbin model. The results reveal that the effect of economic growth, electricity use, and technological innovation on CO2 emissions has a spatial spillover effect. The results verify that international trade and the transport sector promote the country's carbon emissions. The typical speculation spike on technology innovation enhanced and financial development should concentrate more on protective ecological parameters. The research provides theoretical guidance for solving the contradictory problem of renewable energy use growth and CO2 emission limitation while promoting green and low-carbon development in the country.