Sustainable development in Pakistan: explore the influence of institutions, industrialization, and tourism on consumption and territory-based emissions

Abstract

In pursuing Sustainable Development Goals (SDGs), understanding the complex interplay between socioeconomic factors and carbon emissions is paramount. Given Pakistan's current environmental situation, this study scrutinizes the relationship between institutional quality, internal conflict, GDP, industrialization, foreign direct investment, external conflict, and international tourism influence on Pakistan's consumption-based and territory-based carbon emissions from 1990 to 2021 in the context of SDGs. Employing a robust analytical framework including ARDL, Single-Fourier-frequency, and Cumulative Fourier-frequency Granger Causality tests, findings reveal that improved institutional quality, industrialization, and foreign direct investment reduce consumption-based emissions. Meanwhile, institutional quality and foreign direct investment decrease territory-based emissions. Conversely, internal conflict and GDP growth intensify both consumption and territory-based emissions. The research contributes valuable insights for policymakers aiming to synchronize national growth with global sustainability goals, emphasizing the delicate balance needed to navigate economic and environmental complexities in achieving the SDGs.