Effect of foreign direct investment on CO2 emission with the role of globalization, institutional quality with pooled mean group panel ARDL

This study utilized the Pooled Mean Group estimator to investigate the effect of renewable energy consumption, electricity consumption, economic growth, institutional quality, and globalization on carbon dioxide emission with an updated dataset for 10 economies for the time period from 1985 to 2018....

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Bibliographic Details
Published in:Environmental science and pollution research international 2021-02, Vol.28 (5), p.5271-5282
Main Authors: Teng, Jian-Zhou, Khan, Muhammad Kamran, Khan, Muhammad Imran, Chishti, Muhammad Zubair, Khan, Muhammad Owais
Format: Article
Language:English
Subjects:
Aquatic Pollution
Atmospheric Protection/Air Quality Control/Air Pollution
Carbon dioxide
Carbon dioxide emissions
Earth and Environmental Science
Economic development
Economic growth
Economics
Ecotoxicology
Electricity
Electricity consumption
Emission
Energy consumption
Environment
Environmental Chemistry
Environmental degradation
Environmental Health
Environmental impact
Environmental science
Foreign investment
Globalization
Renewable energy
Renewable resources
Research Article
Waste Water Technology
Water Management
Water Pollution Control
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Summary:This study utilized the Pooled Mean Group estimator to investigate the effect of renewable energy consumption, electricity consumption, economic growth, institutional quality, and globalization on carbon dioxide emission with an updated dataset for 10 economies for the time period from 1985 to 2018. Results of Harris-Tzavalis’s test and Levin–Lin–Chu’s test show that the utilized regressand and regressors are stationary at I(0) and I(I) that conform that the pooled mean group estimator panel ARDL can be utilized. Results of Kao and Pedroni cointegration tests show that cointegration exists amongst the variables. Empirical results of pooled mean group (PMG) revealed that renewable energy consumption helps to diminish the environmental degradation while foreign direct investment, electricity consumption, and economic growth and institutional quality positively affect the degradation of the environment. The findings show that globalization in the long run adversely and significantly influences the environmental degradation; globalization reduces the environmental degradation in the long run while in the short run, globalization positively and significantly influences the environmental degradation. Results of the panel VAR and VECM model indicate electricity consumption and institutional quality, and globalization positively affects environmental degradation. Further policies are recommended based on the findings.
ISSN:0944-1344
1614-7499
DOI:10.1007/s11356-020-10823-y