Harnessing machine learning to decode the energy–economy–environment trilemma: insights from renewable and non-renewable energy use in Pakistan
摘要
Enhancing environmental sustainability is a major objective, and various econometric approaches have been used to understand it. In this regard, this paper aims to build upon the current literature in environmental economics by examining the relationships among energy consumption, economic growth, renewable energy, and carbon dioxide (CO2) emissions in Pakistan during the period 1965–2022 using machine learning (ML) based methodologies and the traditional autoregressive distributed lag (ARDL) model. Based on an analysis of data using novel machine learning methods, it has been determined that reducing CO2 requires a comprehensive shift from fossil-fuel-based energy sources to renewable alternatives, alongside adopting a more sustainable trajectory. The application of ML-based regression and prediction techniques indicates a projected decrease in CO2 for the year 2023. However, from 2024 onward, findings show a rise in CO2 emissions driven by increased use of non-renewable energy sources. On the other hand, the ARDL results indicate that energy use has a positive impact on CO2 emissions. In contrast, economic growth has a significant negative impact on CO2 emissions in both the short- and long-run. In addition, the impact of renewable energy is only short-term and significant in reducing CO2 emissions. Thus, providing Pakistan with a consistent, sustainable economic development trajectory through renewable energy is crucial.