The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam (original) (raw)
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Environmental Science and Pollution Research
Economic development is associated with higher energy consumption, which has a direct impact on climate change. As a result, today's growth policies should also align with environmental sustainability goals. Although socioeconomic variables related to air pollution have been extensively studied in previous studies, little research has examined their long-and short-term effects. This study aimed to investigate the long-run and short-run relationship between carbon dioxide (CO 2) emissions, energy consumption, especially gas as a clean fuel, foreign direct investments (FDI), and gross domestic product (GDP) using autoregressive distributed lag (ARDL) model in Iran during the period of 40 years. The estimation results indicated the validity of the environmental Kuznets curve (EKC) hypothesis for Iran. Moreover, empirical findings illustrate that the impact of financial growth on CO 2 emissions, in the long run, is U-shaped in Iran. The reliance on gas as a fuel for the country led to a reduction of the carbon and ecological footprints in a short time compared to other polluting fuels. Further, our empirical results indicate that economic growth and foreign direct investment contribute to reducing pollutant and carbon emissions in Iran over long and short periods. According to the empirical findings, important energy policy recommendations are offered. Keywords CO 2 emission • ARDL • Economic growth • Foreign direct investment • Gas consumption • Renewable energy Nomenclature EKC Environmental Kuznets curve GDP Gross domestic product FDI Foreign direct investment BP British Petroleum PLS Partial least squares ARDL Autoregressive distributed lag IEA International Energy Agency αi …n Short-run coefficients ∆ Promptness of correction ECMt−1 First differences of variables over time I (0) Lower boundaries I (1) Upper boundaries ἐt The error term CUSUM Cumulative sum of recursive residuals Highlights • The ARDL lag bound test is used to determine the socioeconomic factors on CO 2 emission. • The inverted U-shaped (EKC hypothesis) pattern is affirmed in Iran. • The strongest interaction appears between FDI, gas consumption, GDP, and CO 2 emission which have both short and long run. • In the long run, natural gas consumption shows a rising impact on CO 2 emissions, in contrast to the short-run impact. • The Iranian energy portfolio needs to be diversified urgently.
Co2 Emissions and Economic Growth in Vietnam: An ARDL Bound Testing Approach
Asian Journal of Economic Modelling, 2018
This study examines the impacts of CO2 emissions on economic growth of Vietnam for the period 1986-2015 by using Autogressive Distributed Lag (ARDL) model. The results reveal that there is cointegration relationship between CO2 emissions and economic growth. In the long run carbon dioxide emissions have a significant negative impact on Vietnam economic growth. Therefore, in order to achieve a sustainable growth and development, it is advisable for the Vietnamese government to focus on environmental protection policy. Contribution/ Originality: This is the very first study to examine the impacts of carbon dioxide emissions on Vietnam economic growth for the 1986-2015 period. The results show that carbon dioxide emissions have a significant negative impact on Vietnam economic growth.
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Concerning environmental pollution issues derived from fossil energy consumption, the application of renewable energies plays an important role in countries, especially in their energy sector policymaking. Since determining the relationship between different variables and renewable energy not only has significant policy applications in energy sector but also is necessary in achieving sustainable development goals, this study assesses the impact of effective factors on the development of renewable energy consumption in Iran with emphasis on the role of foreign direct investment (FDI) and financial sector development (especially stock market development). This study applies Auto-Regressive Distributed Lag (ARDL) bounding test method over the period of 1978-2016. The research findings show that there is a causal relationship between foreign direct investment and the stock market and renewable energy consumption in Iran such that the increase of foreign direct investment and stock marke...
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The present study examines the long-run and short-run impacts of fossil fuels consumption, foreign direct investment and economic growth on carbon emissions in fifteen developing Asian countries. Our empirical evidence analyses panel data for the period from 1990 to 2013, and it applies an Autoregressive Distributive Lag (ARDL) model. Our results show that in these developing economies, the efforts to foster economic growth are contributing to the generation of CO 2 emissions, and that fossil fuels consumption is contributing to carbon emissions and to the deterioration of the environment at the regional level. Moreover, the empirical results spotlight that foreign direct investment is a source of environmental degradation that increases carbon emissions at the domestic level, confirming the Pollution Haven hypothesis. Furthermore, our data confirms the existence of an Environmental Kuznets Curve (EKC) in these developing Asian countries. Finally, our study suggests that reducing the consumption of fossil fuels and fostering an environmentally friendly economic growth strategy in these developing countries will prove helpful for the well-being of this part of the developing world.
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Carbon dioxide (CO2) emissions have become a critical aspect of the economic and sustainable development indicators of every country. In Pakistan, where there is a substantial increase in the population, industrialization, and demand for electricity production from different resources, the fear of an increase in CO2 emissions cannot be ignored. This study explores the link that betwixt CO2 emissions with different significant economic indicators in Pakistan from 1960 to 2018 using the autoregressive distributed lag (ARDL) modelling technique. We implemented the covariance proportion, coefficient of determination, the Durbin Watson D statistics, analysis of variance (ANOVA), variance inflating factor (VIF), the Breusch-Pagan test, the Theil’s inequality, the root mean quare error (RMSE), the mean absolute percentage error (MAPE), and the mean absolute error (MAE) for the diagnostics, efficiency, and validity of our model. Our results showed a significant association between increased...
Factors influencing CO2 Emission in China: A Nonlinear Autoregressive Distributed Lags Investigation
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This paper investigates the environmental impact of economic growth, energy consumption, financial development and globalization in China over the period 1970Q1-2015Q4. In particular we consider four dimensions of globalization namely economic, social, political and overall globalization. The Nonlinear Autoregressive Distributed Lags (NARDL) model has been employed to capture the potential asymmetric impact of the determinants of dioxide carbon emissions in China. Interestingly, findings show that: (1) In the short-run: economic growth and financial development have a significant symmetric impact on CO2 emissions. Energy consumption has a nonlinear and asymmetric influence on CO2 emissions. However, economic globalization does not impact CO2 emissions. (2) In the long-run: economic growth, financial development and economic globalization exhibit an asymmetric influence on carbon emissions in model including the economic dimension of globalization. Economic growth has a positive symm...
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This study investigates the asymmetries in the nexus among carbon emissions, real output, and energy consumption between Malaysia and South Korea through the use of a non-linear autoregressive distributed lag (NARDL) model. The positive and negative shock of the variables indicate varying signs and magnitudes. Furthermore, the findings revealed a mixed presence of asymmetries among the nexus, as indicated in the variables for both short and long runs. The study also exemplified that the dependence of South Korea on energy consumption to generate economic growth appears to be greater than Malaysia. On the contrary, the impact of economic expansion upon the higher release of carbon emissions is greater for the case of Malaysia, in comparison to South Korea. The outcomes further displayed that higher energy consumption in both nations could lead to higher economic growth. As such, the presence of asymmetries in the relationships between the tested variables could impose significant information for future policy recommendations, particularly for these two nations.
The effectiveness of Vietnamese policies response to climate change through ARDL analysis
HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 2021
Being a highly vulnerable country due to climate change, Vietnam has issued various climate policies while trying to keep the pace of economic growth. The study evaluates the effectiveness of these policies by examining the effect of economic and energy factors in the efforts of controlling CO2 emissions. Approach by Autoregressive Distributed Lag (ARDL) analysis, the model of a linear regression between CO2 emissions and Gross Domestic Product (GDP), Foreign Direct Investment (FDI) & sources of energy consumption has been developed from 1985 to 2018. The study indicates that the economic factor as Foreign Direct Investment (FDI) is a possible significant element to mitigate the emission. In addition, sources of energy consumption have the important role of controlling CO2 emissions. In the long run, the consumption of non - renewable energy is a positive and significant effect on CO2 emissions while renewable energy is vice versa. These outcomes show the Foreign Direct Investment (...
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This paper analyzes the causal link between CO2 emission, energy consumption, GDP, square of GDP, and foreign direct investment in the Environmental Kuznets Curve for Thailand from 1971-2014. Three steps are used: bound tests to verify the presence of cointegration, autoregressive distributed lag (ARDL) model to check the effects of the dependent variables on the independent variable in the short run and long run, and finally, the vector error correction (VECM) was used the detect the causal relationships among variables. The results show no cointegration between variables, confirming the short-run relationship's existence. In addition, the Granger causality results show varied outcomes, indicating that two bidirectional causal relationships exist in the short run. The first relationship is between energy consumption and GDP, and the second is between energy consumption and GDP2. In addition, there are seven unidirectional relationships where FDI affects CO2 emission, energy...
International Journal of Energy Economics and Policy, 2020
This study tests the environmental Kuznets curve (EKC) while examining the role of renewable energy sources and FDI to potentially effect the amount of CO 2 emissions in Vietnam. Using Autoregressive Distributed Lag (ARDL) approach, the relationship between CO 2 emissions and GDP, FDI and sources of energy consumption has been investigated during 1980-2018 in Vietnam. The results of study reveal that there is non-existence EKC for Vietnam in long run and a sign of inverted U-shape in short run in this period. The analysis also shows that the coefficient of energy consumption from hydro-power renewable sources which correlates to CO 2 emissions is negative and significant while FDI leads to increasing carbon dioxide emissions in the long run. That implies Vietnam could have been benefited from a drop in CO 2 emissions at some point in the early stage of the period, however, the country has been facing environmental pollution increase as GDP and FDI growth.