Abstract:

Globalization is a major global phenomena that is influencing economies and communities, ensuring financial and cultural integration around the world, as well as movement of goods, ser- vices, technologies, and capital. On the background of the globalization, the planet as a single ecosystem acts as an element to prevent the environmental degradation and handle the global problem, such as biodiversity, the ozone layer, or climate change. The purpose of this study is to examine the role of globalization on environmental quality by applying the Environmental Kuznet Curve hypothesis for Pakistan over the period 1975–2015. Bound test has been carried out to examine the long-run relationship between series of selected variables, and using the auto regressive distributed lag methodology and error correction model was investigated in examin- ing the short-run and long-run relationship between globalization and environmental quality. The empirical findings reveal that carbon dioxide emissions and independent variables such as GDP, energy, and the globalization have a long-term relationship. In the instance of Pakistan, the find- ings of this investigation were confirmed by the Environmental Kuznet Curve hypothesis, which is also supported by the impulse response function. Furthermore, Granger causality demonstrates that there is a long-term one-way causality in Pakistan spanning GDP, energy use, globalization, and carbon dioxide emission.

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