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eISSN: 2083-5906
ISSN: 1230-1485
ISSN: 1230-1485
ORIGINAL RESEARCH
Impact Analysis of Chinese FDI and Green
Innovations on Carbon Emissions in Pakistan:
Utilizing the ARDL Bounds Testing Method
1
School of Economics, Shandong University, Jinan, China
2
School of Business, Nanjing Xiaozhuang University, Nanjing, China
3
Department of Political Science, Kohat University of Science and Technology, Pakistan
Submission date: 2023-12-02
Final revision date: 2024-01-08
Acceptance date: 2024-01-31
Online publication date: 2024-08-05
Publication date: 2025-01-02
Pol. J. Environ. Stud. 2025;34(1):297-309
KEYWORDS
TOPICS
ABSTRACT
This study investigates the relationship between Chinese foreign direct investment (FDI) and CO2
emissions in Pakistan using data from 2003 to 2019. The Autoregressive Distributed Lag (ARDL) bound
testing approach is employed to perform impact analysis. The findings reveal an adverse impact of Chinese
FDI on carbon emissions, underscoring the conflict between FDI and environmental sustainability.
Population growth exacerbates CO2 emissions, while economic growth surprisingly shows no
significant relationship. In contrast, green innovation emerges as a critical driver of progress in Pakistan,
promoting positive environmental outcomes. Despite China’s green development initiatives, foreign
direct investment in Pakistan continues to contribute to pollution and environmental hazards. The study
recommends the adoption of carbon reduction technologies, the establishment of emission monitoring
systems, the prioritizing of eco-friendly investments, the implementation of population control measures,
the strengthening of environmental regulations, and the fostering of bilateral agreements to promote
sustainability in Pakistan’s development trajectory.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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