Triangular relationship among energy consumption, air pollution and water resources in Pakistan

Abstract Literature presents opposing findings about relationship among critical variables such as energy consumption, air pollution, water resources, and natural resource rents. This is particularly true in case of Pakistan. This study aims to narrow the gap by examining the long-run and causal relationship among these variables in Pakistan specific scenario covering a period of 38 years i.e. 1975 to 2012, where all inputs are subject to change. The results show that energy consumption and water resources have a significant positive relationship with air pollution both in short-run and long-run. The relationship further supports the unidirectional causality of the former with the latter and not vice versa. Similarly, the results indicate the continued influence of energy consumption and water resources over air pollution for the next 10 years. The total natural resources rent exhibits the least contributor to affect air pollution in Pakistan.