Exploring the asymmetric effects of renewable energy production, natural resources, and economic progress on CO2 emissions: fresh evidence from Pakistan

A bulk of literature has examined the asymmetric impact of renewable energy consumption on CO 2 emissions by using the advanced econometric approach. While the asymmetric role of renewable energy production in the CO 2 equation is largely unknown, our present study quantifies the asymmetric relationship between renewable energy production, natural resources, economic progress, and CO 2 emission for Pakistan by using the NARDL approach. It is found that positive change in renewable energy production has a positive effect on CO 2 emissions, while a negative change in renewable energy production has a negative effect on CO 2 emissions in the long run. Furthermore, a positive and negative change in natural resources contributes negatively to CO 2 emissions in the long run. The results reveal that a positive change in economic progress significantly increases CO 2 emissions in the long run. Based on findings, Pakistan’s government should encourage local and international investors to increase their investment in the production of renewable energy by reducing environmental degradation.