Climate change: A threat to the economic growth of Pakistan

Abstract

Pakistan is recognized as a country with low income along with poor human development indicators. Although its contribution to greenhouse gas (GHG) emissions is miniscule in comparison with other countries (it contributes only about 0.8 per cent of the total GHG emissions), it is one of the major victims of the adverse effects of climate change. The present study is an attempt to explore the impacts of climate change on the economic growth of Pakistan by conducting a national level analysis for the period 1973–2011. It has been found that temperature (proxy for climate change) has a negative and significant relationship with GDP, as well as with productivity in the agricultural, manufacturing and services sectors. The severity of these negative effects is higher for the Agriculture sector as compared to manufacturing and services.