Work

From Budgets to Biodiversity: How Fiscal Decentralization Shapes Environmental Sustainability in Pakistan

Year: 2025

Type: article

Abstract: This research contributes to the continuing discussion on the causes of environmental degradation by investigating the impact of fiscal decentralization on environmental sustainability utilizing four measures of environmental sustainability and three measures of fiscal decentralization. The annual data from WDI, OECD, and Global Footprint Network from 1990 to 2023 is analyzed, and the auto regression distributive lag (ARDL) model is employed to calculate long-run estimates. The findings show that fiscal decentralization, technological innovation, population, and other control variables, such as foreign direct investment and trade openness, play important roles in determining environmental sustainability. Composite fiscal decentralization, expenditure, and revenue decentralization lead to decreased environmental sustainability while technological innovation improves environmental sustainability. Furthermore, population, foreign direct investment, and trade openness also negatively affect environmental sustainability. The findings suggest that more resources should be allocated for research and development to save the environment.

Source: Sustainability

DOI: 10.3390/su17219561

Authors: Rafique Ur Rehman Memon, Farhan Ahmed

Institutions: Government of Pakistan, Greenwich University, NED University of Engineering and Technology

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: gold

Estimated APC paid: $2,896