Abstract
The main concern of this study is to address the issue of environmental degradation that has become a worldwide phenomenon. Increased emissions of green house gases have become a serious threat to the quality of world’s environment. It is observed that the fast economic growth, urbanization and rapid industrialization process require an intensive use of energy and other natural resources that may lead to environmental degradation due to releasing more waste and remainder in the nature. The present study considers the CO2 emission as the main source of the green house effect that comes from fossil fuel consumption. Based on the STIRPAT model, the analysis has provided the justification of environmental Kuznets curve hypothesis (EKC) and ecological modernization theory. The study concludes that energy is the main source of pollution in environment. It is suggested that optimal level of growth and urbanization should be attained for controlling environmental degradation.