ECONOMIC GROWTH, TOURISM, AND ENERGY USE AS DRIVERS OF CO₂ EMISSIONS: TESTING THE ENVIRONMENTAL KUZNETS CURVE IN PAKISTAN

Abstract

Tourism has grown rapidly with advancements in communication and transportation, contributing to economic growth but also to CO₂ emissions. This study examines the relationship between tourism, economic growth, energy consumption, trade openness, and CO₂ emissions in Pakistan from 1995 to 2020 using the Fully Modified Ordinary Least Squares (FMOLS) method and data from the World Development Indicators (WDI). Results show that tourism can reduce CO₂ emissions when supported by strict environmental regulations. However, economic growth, energy use, trade liberalization, and urbanization significantly contribute to environmental degradation. The study recommends promoting sustainable tourism and enforcing strong environmental policies to curb emissions