Attaining Environmental Sustainability in Pakistan: The Role of Technological Innovation and Renewable Energy

Abstract

This research examines the impact of renewable energy and technological innovation on environmental sustainability in Pakistan using annual data from 1995 to 2023. The analysis investigates the short and long-run association between CO₂ emissions using the ARDL technique and key explanatory variables, including FDI, industrialization, and human capital. The findings show that renewable energy consumption and technological innovation significantly reduce CO₂ emissions, highlighting their vital roles in promoting environmental sustainability. Conversely, FDI and industrialization are found to increase emissions, indicating their current alignment with pollution-intensive activities. In the short-run, human capital has an insignificant effect on CO₂ emissions. The findings also confirm a stable long-run association among the variables. The study concludes with key policy recommendations to enhance clean energy adoption, support innovation, and regulate environmentally harmful industrial and investment activities.