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Climate change has become a major challenge for sustainable development of human society. This study is anattempt to analyze existing literature to identify economic indicators that hamper the process of globalwarming. This paper includes case studies based on various countries to examine the nexus for environmentand its relationship with Foreign Direct Investment, transportation, economic growth and energyconsumption. Furthermore, the observations are analyzed from the perspective of China-Pakistan EconomicCorridor (CPEC) and probable impact on carbon emission of Pakistan. A major portion of CPEC investment isallocated for transportation. However, it is evident that transportation sector is substantial emitter of carbondioxide (CO2) gas. Unfortunately, there is no empirical work on the subject of CPEC and carbon emission forvehicular transportation. This paper infers that empirical results from various other countries are ambiguousand inconclusive. Moreover, the evidence for the pollution haven hypothesis and the halo effect hypothesis islimited in general and inapplicable for CPEC in particular. The major contribution of this study is the proposalof an energy efficient transportation model for reducing CO2 emission. In the end, the paper suggestsstrategies to climate researchers and policymakers for adaptation and mitigation of greenhouse gases (GHG).

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