Sectoral Growth, Exports, and Energy Consumption: A Case of Pakistan

Abstract

Economic Growth is a prominent factor to affect the energy consumption of Pakistan. This study tends to explore the influence of GDP growth of sectoral growth, agricultural, industrial and service sector on the level of energy consumption fossil fuel in Pakistan from 1990 to 2019 long period of time. The data was obtained from WDI (World Development Indicators).  ARDL (Auto Regressive Distributive Lag Model) econometric model was designed to look into the impacts of fossil fuel or energy consumption on Pakistan’s economic growth in both the short-run and long-run. Results revealed negative impacts of energy consumption or the use of fossil fuel on industry, personal expenditures, and exports of goods and positively affect agriculture and services and model is significant. These results showed that that economic expansion plays important role to increase energy consumption of Pakistan.