Abstract

This investigation utilized the Non-Linear Autoregressive Distributed Lag (NARDL) approach to ascertain the non-linear influence of FDI and ICT on CO₂ emission in Pakistan. Moreover, the examination revealed the impact of population, trade, and import and production of ICT on Pakistan's environmental quality. The findings of the inspection specified that negative (positive) shocks in ICT use upsurge (diminution) the level of CO₂ emanation. In addition, positive shocks in FDI expressively escalate CO₂ emission. However, adverse shocks indicated inconsequential sway on CO₂ emission. The study identified that the production of ICT instruments at the domestic level improves environmental quality than importing from other nations. Further, the population exposed direct rapport with CO₂ emission; while, the coefficient of trade disclosed a negative effect on CO₂ emission in Pakistan. The investigation evaluated the Environmental Kuznets Curve (EKC) hypothesis and found that economic growth has a U-shaped liaison with CO₂ emission, inferring that the EKC hypothesis imperatively exists in Pakistan. The investigation suggested that the government of Pakistan should facilitate the general public to use smart electrical devices. Moreover, the Government of Pakistan should provide opportunities for ICT based international companies to install their production units in Pakistan.