Moderating and mediating role of renewable energy consumption, FDI inflows, and economic growth on carbon dioxide emissions: evidence from robust least square estimator
FOREIGN DIRECT-INVESTMENT
; ENVIRONMENTAL KUZNETS CURVE
; POLLUTION HAVEN HYPOTHESIS
; CO2 EMISSIONS
; ELECTRICITY PRODUCTION
; FINANCIAL DEVELOPMENT
; TRIVARIATE ANALYSIS
; DYNAMIC LINKAGES
; CLIMATE-CHANGE
; PANEL
WOS学科分类:
Environmental Sciences
WOS研究方向:
Environmental Sciences & Ecology
英文摘要:
The relationship between renewable energy consumption (REC), foreign direct investment (FDI) inflows, economic growth, and their resulting impact on CO2 emissions is widely discussed area in energy and environmental literature; however, there is an unseen literature on moderation and mediation effect of per capita income and FDI inflows with the renewable energy consumption on CO2 emissions in developing countries like Pakistan, which is being evaluated in this study by using a consistent time series data for a period of 1975-2016. The results show that economic growth and FDI inflows both increase CO2 emissions, while REC substantially decreases CO2 emissions during the study time period. The results do not support the inverted U-shaped Environmental Kuznets Curve (EKC) hypothesis for per capita income (and FDI inflows) and per capita CO2 emissions in a country. The results supported pollution haven hypothesis' where FDI inflows damage the natural flora of the country. By inclusion of moderation and mediation effect of per capita income and FDI inflows with the REC on CO2 emissions averted the positive impact of REC, and converted into negative externality, where environmental sustainability agenda is compromised by lower environmental regulations and unsustainable production techniques that increase country's economic growth. The study concludes that by adding REC in existing energy portfolio may help to reduce CO2 emissions while strict environmental compliance may disregard the negative externality of unsustainable production and it will support to achieve green development programmes in a country.
1.Univ Wah, Dept Econ, Quaid Ave, Wah Cantt, Pakistan 2.King Saud Univ, Dept Management, Coll Business Adm, Riyadh, Saudi Arabia
Recommended Citation:
Naz, Saiqa,Sultan, Rashida,Zaman, Khalid,et al. Moderating and mediating role of renewable energy consumption, FDI inflows, and economic growth on carbon dioxide emissions: evidence from robust least square estimator[J]. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH,2019-01-01,26(3):2806-2819