Achieving “clean” or “green” energy initiatives and a sustainable future in the conundrum of urbanisation and technological innovation
DOI:
https://doi.org/10.15611/aoe.2026.1.12Keywords:
CO2 emissions, technological innovation, energy use, trade, environmental sustainabilityAbstract
Aim: The aim of this research was to examine the impact of renewable energy consumption (RE), technological innovation (TI), urbanisation (UR), and trade (TR) on carbon dioxide emissions (CE) in Pakistan, utilising an asymmetric (NARDL) approach to understand the dynamics of these factors in influencing environmental quality.
Methodology: The study employed the asymmetric Nonlinear Autoregressive Distributed Lag (NARDL) approach to analyse the relationship between energy consumption, urbanisation, technological innovation, trade, and carbon emissions in Pakistan. Additionally, the robustness of the results was verified using the Robust Least Squares (RLS) and Generalised Method of Moments (GMM) techniques to assess the persistence of the variables over time.
Results: The study found that renewable energy consumption and urbanisation had a negative impact on environmental quality, both in the short and long term. Technological innovation, on the other hand, had a positive impact on environmental quality in the short and long-run estimations. However, the results from robust least squares and GMM analysis indicated that renewable energy use, urbanisation, and trade negatively impacted environmental quality, while technological innovation emerged as a significant factor for improvement.
Implications and recommendations: The findings suggest that while renewable energy use and urbanisation contribute negatively to environmental quality, technological innovation can help mitigate these adverse effects. Policymakers should focus on creating favourable legislation that promotes the adoption of green technologies and renewable energy sources. Encouraging further advancements in technological innovation in the green energy sector is crucial for achieving environmental sustainability in Pakistan.
Originality/Value: This study provides valuable insights into the role of renewable energy, technological innovation, urbanisation, and trade in shaping carbon emissions in Pakistan, using an innovative asymmetric modelling approach. The research contributed to the literature on environmental economics by emphasising the importance of technology and energy consumption in the fight against global warming.
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Copyright (c) 2026 Abdul Rehman, Hengyun Ma, Wasi Ul Hassan Shah, Enea Constanța
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Accepted 2025-10-12
Published 2026-05-29
