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Foreign Direct Investment Settlement, Novel Energy Methods and CO2 Emissions: Evidence From United Arab Emirates

Author

Listed:
  • Umar Nawaz Kayani

    (College of Business Administration, Al-Ain University, Abu-Dubai, United Arab Emirates)

  • Ahmet Faruk Aysan

    (Hamad Bin Khalifa University, College of Islamic Studies, Qatar Foundation, Qatar,)

  • Umer Iqbal

    (FAST School of Management-National University of Computer and Emerging Sciences, Lahore Campus, Pakistan,)

  • Muhammad Arif

    (Department of Business Administration, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Pakistan)

  • Ijaz Ur Rehman

    (College of Business Administration, University of Sharjah, United Arab Emirates.)

Abstract

This paper explores the relationship between foreign direct investment (FDI) settlement, the contribution of clean energy and CO2 emission in United Arab Emirates (UAE). Using the time-series estimation methods, this study opts cointegration test to find the long-run association between FDI and CO2. Furthermore, energy source of UAE is based on fossil fuel, we employed fixed-effect regression model to determine the effect of FDI after controlling several other factors that causes CO2 emission to find the magnitude. After obtaining the data from 1971-2019, we find that FDI plays a significant role in CO2 emission in the economy. Another key contribution of this paper is regarding clean energy. The results confirm that clean energy helps to reduce the CO2 emissions. The findings of this research endorses the initiative of the UAE launched Energy Strategy 2050 . This implies that UAE is moving in a right direction to curb the CO2 emission by increasing the contribution of clean energy in the total energy mix and would achieve this target through an effective implementation of the Energy Strategy 2050 .

Suggested Citation

  • Umar Nawaz Kayani & Ahmet Faruk Aysan & Umer Iqbal & Muhammad Arif & Ijaz Ur Rehman, 2022. "Foreign Direct Investment Settlement, Novel Energy Methods and CO2 Emissions: Evidence From United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 364-369, November.
    • Handle: RePEc:eco:journ2:2022-06-44
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    References listed on IDEAS

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    Cited by:

    1. Umar Nawaz Kayani & Mochammad Fahlevi & Roohi Mumtaz & Reema Al Qaruty & Muzaffar Asad, 2023. "The Nexus between Carbon Emissions and Per Capita Income of Households: Evidence from Japanese Prefectures," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 567-572, November.
    2. Ismat Nasim & Mohamed Boukhris & Umar Nawaz Kayani & Farrukh Bashir & Syed Arslan Haider, 2023. "Exploring the Links between Renewable Energy, FDI, Environmental Degradation, and International Trade in Selected Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 418-429, November.
    3. Umar Nawaz Kayani & Anamul Haque & Umme Kulsum & Nishat Taslin Mohona & Fakhrul Hasan, 2023. "Modeling the Antecedents of Green Consumption Values to Promote the Green Attitude," Sustainability, MDPI, vol. 15(17), pages 1-15, August.
    4. Bolat, C. Kaan & Soytas, Ugur & Akinoglu, Bulent & Nazlioglu, Saban, 2023. "Is there a macroeconomic carbon rebound effect in EU ETS?," Energy Economics, Elsevier, vol. 125(C).
    5. Umar Nawaz Kayani & Misbah Sadiq & Mustafa Raza Rabbani & Ahmet Faruk Aysan & Farrukh Nawaz Kayani, 2023. "Examining the Relationship between Economic Growth, Financial Development, and Carbon Emissions: A Review of the Literature and Scientometric Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 489-499, March.

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    More about this item

    Keywords

    Foreign direct investment; Clean energy; United Arab Emirates; Carbon emissions;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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