Investigating the impact of renewable energy, international trade, tourism, and foreign direct investment on carbon emission in developing as well as developed countries

Abstract

Our research examined the renewable energy consumption, foreign direct investment, international trade, and tourism impact on carbon dioxide discharge using system GMM, FMOLS, and DOLS models in selected developed countries of Europe and developing countries of Asia Pacific of the global employment for a period spanning 2000 to 2020. The results indicate that foreign direct investment and tourism comprise a positive affiliation with carbon discharge. Simultaneously, renewable energy utilization with international trade significantly negatively relates to carbon emissions in developed countries. On the other hand, renewable energy consumption, tourism, and global trade play an essential role in increased carbon emissions. Still, carbon dioxide emission decreases by foreign direct investment in developed countries. It is discovered that with long-run estimators, the long-run relationship of variables through carbon discharge in developed and developing countries. The study findings are considered useful in future planning of renewable energy utilization, FDI, tourism policies, and trade openness to improve ecological excellence.

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Data availability

All results reported in this research were carried out in R-studio computational environment. Data used in this research is available online (https://databank.worldbank.org/home.aspx).

Abbreviations

FDI:

Foreign direct investment

EKC:

Environmental Kuznets curve

FMOLS:

Fully modified ordinary least square

DOLS:

Dynamic ordinary least square model

CO2 :

Corbin dioxide

SGMM:

System generalized method of moments

GDP:

Gross domestic product

RE:

Renewable energy

GHDS:

Greenhouse gases

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Authors

Contributions

Yousaf Ali Khan initiated the idea and carried out the research; Muneeb Ahmad collected the data; Yousaf Ali Khan analyzed the data; Yousaf Ali Khan and Muneeb Ahmad wrote the manuscript and approved the final version for submission.

Corresponding author

Correspondence to Yousaf Ali Khan.

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Khan, Y.A., Ahmad, M. Investigating the impact of renewable energy, international trade, tourism, and foreign direct investment on carbon emission in developing as well as developed countries. Environ Sci Pollut Res (2021). https://doi.org/10.1007/s11356-021-12937-3

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Keywords

  • Carbon production
  • Tourism
  • Renewable energy
  • FDI
  • Tourism
  • Trade
  • Renewable energy
  • Dynamic model
  • Long-run estimators

JEL Classification

  • C3
  • Q4
  • O1
  • Q5