Exploring the dynamic interaction of CO2 emission on population growth, foreign investment, and renewable energy by employing ARDL bounds testing approach

Greenhouse gases are considered an immense threat for the environment and humanity on the planet, and also cause the climatic change. The present analysis key aim was to explore the effect of CO2 emission on foreign investment, renewable energy utilization, and population growth in Pakistan. The ARDL bounds testing technique was applied to investigate the variables' interaction via short- and long-run analysis. Furthermore, pairwise Granger causality method was also utilized to check the causal relation amid the study variables. Outcomes expose that CO2 emission has an adverse interaction with renewable energy with probability value (0.5497), while the variable foreign investment and population growth exposed a constructive association with carbon dioxide emission with probability values (0.3548) and (0.4217) consistently. Similarly, the results through long-run analysis expose that CO2 emission has an adverse influence to renewable energy usage with P-value (0.4646). Moreover, the results also uncovered that foreign investment and population growth has positive interaction with CO2 emission and having probability values (0.3577) and (0.5715). Solid steps are required from the Pakistani government regarding the demonization of CO2 emission in order to upsurge the economic progress.