Impact Analysis of Chinese FDI and Green Innovations on Carbon Emissions in Pakistan: Utilizing the ARDL Bounds Testing Method

This study investigates the relationship between Chinese foreign direct investment (FDI) and CO2 emissions in Pakistan using data from 2003 to 2019.The Autoregressive Distributed Lag (ARDL) bound testing approach is employed to perform impact analysis.The findings reveal an adverse impact of Chinese FDI on carbon emissions, underscoring the conflict between FDI and environmental sustainability.Population growth exacerbates CO2 emissions, while economic growth surprisingly shows no significant relationship.In contrast, green innovation emerges as a critical driver of progress in Pakistan, promoting positive environmental outcomes.Despite China's green development initiatives, foreign direct investment in Pakistan continues to contribute to pollution and environmental hazards.The study recommends the adoption of carbon reduction technologies, the establishment of emission monitoring systems, the prioritizing of eco-friendly investments, the implementation of population control measures, the strengthening of environmental regulations, and the fostering of bilateral agreements to promote sustainability in Pakistan's development trajectory.