The Effects of Green Practices on Economic Growth in Pakistan
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https://doi.org/10.58329/criss.v3i3.157Abstract
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Green practices play a key role in boosting the economic growth of a country. With the growing awareness and concern about environmental sustainability, the need of shifting towards a low-carbon economy and adoption of green practices has gained significant attention. The aim of this study is to analyze the effect of various green practices on economic growth in Pakistan. For this purpose, green banking, renewable energy, and foreign direct investment have been taken as the independent variables while economic growth has been taken as the dependent variable in this study. A mixed yet predominantly positive relationship between the variables was revealed by a comprehensive review of existing literature. This study is based on a quantitative research method along with a deductive approach that is supported by hypotheses that are tested with the help of the data gathered. Forty- two listed commercial banks in Pakistan that are subject to State Bank of Pakistan regulation make up the population. It also includes five percent of the energy mix which is consumed within Pakistan and is considered renewable energy and the data was gathered from the official website of NEPRA. The sampling data for foreign direct investment is gathered from the official site of the World Bank from the year 1999 to 2022. The sampling technique that is used in this study to collect data is convenience sampling. The number of samples taken for each variable was twenty-three and the software used to analyze data was Statistical Package for the Social Sciences (SPSS). The green banking has a strong positive effect on economic growth meanwhile; the renewable energy and foreign direct investment both have a direct but an insignificant effect on economic growth in Pakistan. Finally, this study could be beneficial for future researchers in the aspect to focusing on green practices and their implementation.
Keywords:
Green practices, Economic growth, Green-banking, Renewable energy, Foreign direct investment, Environmental sustainability
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