https://doi.org/10.52131/jee.2022.0301.0025
50
iRASD Journal of Energy & Environment
Volume 3, Number 1, 2022, Pages 50 - 60
Journal Homepage:
https://journals.internationalrasd.org/index.php/jee
Sectoral Growth, Exports, and Energy Consumption: A Case of
Pakistan
Komal Urooj
1
, Muhammad Ali Zafar
2
1
MPhil Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan.
Email: komalurooj03@gmail.com
2
MPhil Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan.
Email: aliizaffaar@gmail.com
ARTICLE INFO ABSTRACT
Article History:
Received: May 08, 2022
Revised: June 24, 2022
Accepted: June 28, 2022
Available Online: June 30, 2022
Economic Growth is a prominent factor to affect the energy
consumption of Pakistan. This study tends to explore the
influence of GDP growth of sectoral growth, agricultural,
industrial, and service sector on the level of energy
consumption fossil fuel in Pakistan from 1990 to 2019 long
period of time. The data was obtained from WDI (World
Development Indicators). ARDL (Auto Regressive Distributive
Lag Model) econometric model was designed to look into the
impacts of fossil fuel or energy consumption on Pakistan’s
economic growth in both the short and long run. Results
revealed the negative effect of energy consumption or fossil
fuel use on the industry, personal expenditures, and exports of
goods and the positive impact on agriculture and services, and
the model is significant. These results showed that economic
expansion plays an important role in increasing energy
consumption in Pakistan.
Keywords:
Sectoral growth
Energy consumption
Fossil fuel
Economic growth
Pakistan
JEL Classification Codes:
O47, Q41, R11
Funding:
This research received no specific
grant from any funding agency in the
public, commercial, or not-for-profit
sectors.
© 2022 The Authors, Published by iRASD. This is an Open Access
Article under the Creative Common Attribution Non-Commercial 4.0
Corresponding Author’s Email: komalurooj03@gmail.com
Citation: Urooj, K., & Zafar, M. A. (2022). Sectoral Growth, Exports, and Energy Consumption: A
Case of Pakistan. IRASD Journal of Energy & Environment, 3(1), 50–60.
https://doi.org/10.52131/jee.2022.0301.0025
1. Introduction
The agriculture sector has significantly contributed to Pakistan’s economy as it is the
main and dominant sector in Pakistan. The energy demand is much higher, so traditional
sources of energy production are used for the growing energy demand. Such things
become critical for the growth and development of the country. A suitable stock of energy is
inevitable for the fulfillment of the needs of the country. Energy is necessary to reduce
poverty. Energy is necessary for the services sector and agriculture services. Sectoral
growth will raise the energy demand. In agriculture, we need the energy to run tube wells
and tractors. In the industrial sector, energy is used in production activities. Services
sectors use energy in different forms. Energy is essential as an engine in the economic
expansion of a country in the long run. Energy conservation might hinder economic
expansion. Energy production and use are crucial for a nation's economic development.
Abundant use of energy resources is essential for a country's economic growth. The
investor's return can be increased by maximizing the utilization of energy resources. Due to
the rise in sectorial growth, per capita income increases, increasing energy demand. Coal is