Economic growth and carbon emissions in Pakistan: the effects of China’s Logistics Industry

The logistics business is a crucial contributor to economic development, yet it is also the leading source of carbon emissions. Economic growth at the expense of environmental deterioration is a challenging issue; this phenomenon offered a new avenue for scholars and policymakers to investigate and address these issues. The recent study is one of the attempts to explore this intricate subject. The goal of this research is to determine whether or not the Chinese logistics sector has an impact on Pakistan’s GDP and carbon emissions as a result of CPEC. The research utilized data from 2007Q1 to 2021Q4 using the ARDL approach for an empirical estimate. Due to the mixed order of variable integration and finite data set, the ARDL technique is well deserved, which helps reach sound policy inferences. The study's key results indicated that China’s logistic business enhances Pakistan's economic development and carbon emissions in the short and long term. Similarly, China’s energy usage, technology, and transportation contribute to Pakistan's economic progress at the price of environmental damage. The empirical study may be a model for other developing nations, given Pakistan’s viewpoint. With the support of the empirical results, policymakers in Pakistan and other associated countries would be able to plan for sustainable growth in conjunction with CPEC.