Analyzing the Influence of Standard of Living on CO2 Emissions: A Case Study of District Mardan, Khyber Pakhtunkhwa, Pakistan

Abstract

Households’ income is a crucial factor to determine the households’ standard of living. Nevertheless, as the standard of living of the households’ increases, environment degradation also increases. This study empirically examines the influence of standard of living on CO₂ emissions in district Mardan. It also estimates the influence of other pertinent factors such as household size, household location (rural or urban), and household education level. The study employs primary data of 267 households, descriptive statistics, and regression analysis for the estimation of results. The conclusion of the study shows that with increase in households’ income, CO₂ emissions increases as well in the study area. It is also found that there is a positive association between household size, education, and CO₂ emissions. Further, the results of the study reveals that the Environmental Kuznets Curve (EKC) hypothesis is valid in district Mardan. Therefore, the present study suggests formulation of an effective environmental policy that would be conducive to combat CO₂ emissions in the selected District.