Journal of Academic Research for Humanities (JARH) is a double-blind peer-review, Open Free Access, online Multidisciplinary Research Journal
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Vol. 3 No. 3 (2023)
The International "Journal of Academic Research for Humanities"

Research Articles

Energy Rebound Effect In Industrial Sector of Pakistan

Published 31-08-2023

  • Farah Naz
    • ,
  • Dr Kashif Saeed

Farah Naz
University of Peshawar

Dr Kashif Saeed
Department of Economics, University of Peshawar

Abstract

Energy plays an important role in the economic development of a country. Pakistan has made continuous struggles to save energy through technological development, but the energy rebound effect is weakening the impact. Here the question arises, Does technological improvement lead to an energy rebound effect in the industrial sector of Pakistan? The energy rebound effect is the consumption of additional energy due to technological improvement instead of decreasing energy consumption. The objective of this research paper is to find the magnitude of the energy rebound effect in the industrial sector of Pakistan. Data on overall energy consumption, employed labour force, gross fixed capital formation, and real GDP is taken from the period of 1984-2021. This means that there is no overutilization of energy in the industrial sector of Pakistan. The rebound effect over the last ten years, i.e., from 2011 to 2021, is 39.63%. Note that the rebound effect has been present in Pakistan's industrial sector in the past decade only. The trend of energy rebound effects varies significantly over different time phases. The significance of this research paper indicates that technological improvement is essential for saving energy, but we are over-utilizing energy instead of saving energy due to technological improvement as is shown in the last decade only. It is recommended to improve technological progress, the shift from non-renewable resources to renewable resources, energy price mechanisms, and tax adjustments to save energy.

Keywords

Energy rebound effect, technological improvement, energy efficiency, energy consumption, industrial sector

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