AGRICULTURAL LANDS TOWARDS ENVIRONMENTAL SUSTAINABILITY AND URBANIZATION IN THE DIRECTION OF ENVIRONMENTAL DEGRADATION IN PAKISTAN

Abstract

This research aimed to investigate the economic determinants of agricultural land, urbanization, and its role in environmental degradation in Pakistan. The empirical findings have proved the Johansen Cointegration test based on the unit root test. The cointegration rank test with trace and eigen value has shown 5 each cointegration equations in the model and verified the long run presence. The long run empirical results have proved the early stage of the Environmental Kuznets curve. The inverted U shaped EKC is also established by the negative impact of GDP square on CO₂ emissions in the long run. The N shaped EKC is evidenced by the positive association among the cubic effect of economic progression and carbon secretions in Pakistan in the long run. Furthermore, urbanization and energy have positive and constructive relations with CO₂ emissions in the long run. On the other hand, agricultural land negatively impacts carbon releases and assists in maintaining environmental sustainability. The short run analysis has not proved the inverted U, and N shaped Environmental Kuznets Curve hypothesis. The error correction model has reduced the error by about 47% and stabilized it in the long run. The diagnostic test evidenced the model as customarily distributed, serially uncorrelated, and homoscedastic. In the end, CUSUM and CUSUM square has verified the stability of the model of urbanization, economic growth, and environmental deprivation in Pakistan.