IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-01-44.html
   My bibliography  Save this article

The Impact of Investment, Economic Growth, Renewable Energy, Urbanisation, and Tourism on Carbon Emissions: Global Evidence

Author

Listed:
  • Umar Nawaz Kayani

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

  • Misbah Sadiq

    (College of Business Administration, Umm Al Quwain University, United Arab Emirates,)

  • Ahmet Faruk Aysan

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

  • Syed Arslan Haider

    (Department of Management, Sunway Business School (SBS), Sunway University, No 5, Jalan Universiti, Bandar Sunway, 47500 Selangor Darul Ehsan, Malaysia,)

  • Ismat Nasim

    (Department of Economics, the Government Sadiq College Women University, Bahawalpur, Pakistan.)

Abstract

Examining urbanisation and tourism from the perspective of global Sustainable Development Goals is essential for achievinga balance between environmental protection and economic growth in the world's most polluted nations. Moreover, most polluted countries pay more attention to the nature of foreign direct investment (FDI) inflows to achieve a sustainableenvironment. This study intends to explore the impacts of FDI, tourism, urbanization, and economic growth on carbon dioxide emissions using panel data for the top ten most polluted nations for the period from 2000 to 2019. To guide empirical testing,the panel unit root tests LLC and IPS are used. The outcomes of LLC and IPS advise FM-OLS application on how to accomplish the goals. The findings provide proof of how FDI and other factors affect carbon emissions (CE). Particularly, renewable energy consumption (REC) has a detrimental but minor effect on CE. For the panel of developing nations, FDI had a favourable and significant effect on CE along with economic growth, tourism, and urbanization. The expansion of cities isalso harming nature and ecological footprints. These findings are alarming as all factors cause CE under consideration thatleads to the deterioration of the environment. Therefore, more environmental rules should be put into place to reduce CE, draw in clean FDI, and encourage quality-oriented investment in selected nations. Second, it is important to ensure the deployment of green technology and the upgrading of urbanized structures. The government can take several actions against the use of polluting goods and vehicles in urban areas, and any polluting industries should also be outlawed in such residential areas.

Suggested Citation

  • Umar Nawaz Kayani & Misbah Sadiq & Ahmet Faruk Aysan & Syed Arslan Haider & Ismat Nasim, 2023. "The Impact of Investment, Economic Growth, Renewable Energy, Urbanisation, and Tourism on Carbon Emissions: Global Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 403-412, January.
    • Handle: RePEc:eco:journ2:2023-01-44
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14042/7150
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14042
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Akram, Rabia & Chen, Fuzhong & Khalid, Fahad & Huang, Guanhua & Irfan, Muhammad, 2021. "Heterogeneous effects of energy efficiency and renewable energy on economic growth of BRICS countries: A fixed effect panel quantile regression analysis," Energy, Elsevier, vol. 215(PB).
    2. Justin Caron & Thibault Fally, 2022. "Per Capita Income, Consumption Patterns, and CO2 Emissions," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 9(2), pages 235-271.
    3. Contractor, Farok J. & Dangol, Ramesh & Nuruzzaman, N. & Raghunath, S., 2020. "How do country regulations and business environment impact foreign direct investment (FDI) inflows?," International Business Review, Elsevier, vol. 29(2).
    4. Kofi Adom, Philip & Bekoe, William & Amuakwa-Mensah, Franklin & Mensah, Justice Tei & Botchway, Ebo, 2012. "Carbon dioxide emissions, economic growth, industrial structure, and technical efficiency: Empirical evidence from Ghana, Senegal, and Morocco on the causal dynamics," Energy, Elsevier, vol. 47(1), pages 314-325.
    5. Ang, James B. & Fredriksson, Per G., 2021. "Does an early start help or hurt? Statehood, institutions and modern climate change policies," Energy Economics, Elsevier, vol. 94(C).
    6. Adeel-Farooq, Rana Muhammad & Riaz, Muhammad Faraz & Ali, Tariq, 2021. "Improving the environment begins at home: Revisiting the links between FDI and environment," Energy, Elsevier, vol. 215(PB).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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).
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adnan Khurshid & Abdur Rauf & Sadia Qayyum & Adrian Cantemir Calin & WenQi Duan, 2023. "Green innovation and carbon emissions: the role of carbon pricing and environmental policies in attaining sustainable development targets of carbon mitigation—evidence from Central-Eastern Europe," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8777-8798, August.
    2. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    3. Yannic Rehm & Lucas Chancel, 2022. "Measuring the Carbon Content of Wealth Evidence from France and Germany," PSE Working Papers halshs-03828939, HAL.
    4. Samargandi, Nahla, 2017. "Sector value addition, technology and CO2 emissions in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 868-877.
    5. Hiroyuki Taguchi & Aktamov Asomiddin, 2022. "Energy-Use Inefficiency and Policy Governance in Central Asian Countries," Energies, MDPI, vol. 15(4), pages 1-15, February.
    6. von Graevenitz, Kathrine & Rottner, Elisa & Richter, Philipp M., 2023. "Is Germany becoming the European pollution haven?," ZEW Discussion Papers 23-069, ZEW - Leibniz Centre for European Economic Research.
    7. Dong Jichang & He Jing & Li Xiuting & Mou Xindi & Dong Zhi, 2020. "The Effect of Industrial Structure Change on Carbon Dioxide Emissions: A Cross-Country Panel Analysis," Journal of Systems Science and Information, De Gruyter, vol. 8(1), pages 1-16, February.
    8. Yi-Chi Hsiao & Hsueh-Liang Wu & Chun-Ping Yeh, 2023. "An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1485-1512, September.
    9. Carl Gaigné & Lota D. Tamini, 2021. "Environmental Taxation and Import Demand for Environmental Goods: Theory and Evidence from the European Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(2), pages 307-352, February.
    10. Magdalena Owczarczuk, 2020. "Institutional competitiveness of Central and Eastern European countries and the inflow of foreign direct investments," Catallaxy, Institute of Economic Research, vol. 5(2), pages 87-96, December.
    11. Denisa Szabo & Mihai Dragomir & Mihail Țîțu & Diana Dragomir & Sorin Popescu & Silvia Tofană, 2023. "Sustainable Low-Carbon Production: From Strategy to Reality," Sustainability, MDPI, vol. 15(11), pages 1-16, May.
    12. Jiangjun Wan & Yuxin Li & Chunchi Ma & Tian Jiang & Yi Su & Lingqing Zhang & Xueqian Song & Haiying Sun & Ziming Wang & Yutong Zhao & Kaili Zhang & Jinxiu Yang, 2021. "Measurement of Coupling Coordination Degree and Spatio-Temporal Characteristics of the Social Economy and Ecological Environment in the Chengdu–Chongqing Urban Agglomeration under High-Quality Develop," IJERPH, MDPI, vol. 18(21), pages 1-18, November.
    13. Adom, Philip Kofi & Amuakwa-Mensah, Franklin, 2016. "What drives the energy saving role of FDI and industrialization in East Africa?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 925-942.
    14. Mumbunan, Sonny & Maitri, Ni Made Rahayu, 2022. "A Review of Basic Income for Nature and Climate," OSF Preprints bre43, Center for Open Science.
    15. Xu, Haoxin & Romagnoli, Alessandro & Sze, Jia Yin & Py, Xavier, 2017. "Application of material assessment methodology in latent heat thermal energy storage for waste heat recovery," Applied Energy, Elsevier, vol. 187(C), pages 281-290.
    16. Dicky Jhon Anderson Butarbutar & Annisa Lisdayanti, 2020. "The impact of internal business environment on marketing strategies effecting marketing performance: Case of retail industry Bandung city, Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 385-391, July.
    17. Abdelaziz Boukhelkhal, 2022. "Energy use, economic growth and CO2 emissions in Africa: does the environmental Kuznets curve hypothesis exist? New evidence from heterogeneous panel under cross-sectional dependence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13083-13110, November.
    18. Michael Cary, 2020. "Have greenhouse gas emissions from US energy production peaked? State level evidence from six subsectors," Environment Systems and Decisions, Springer, vol. 40(1), pages 125-134, March.
    19. Ishmael Ackah, 2016. "Policy interventions in renewable energy for sustainable development: is Ghana on the right path to achieve SDG 7?," Working Papers of the African Governance and Development Institute. 16/013, African Governance and Development Institute..
    20. Tong, Tong & Chen, Xiaoyue & Singh, Tarlok & Li, Bin, 2022. "Corporate governance and the outward foreign direct investment: Firm-level evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 962-980.

    More about this item

    Keywords

    Foreign Direct Investment; Carbon Emissions; Renewable Energy Consumption; Urbanization; Tourism; Sustainable Development Goals;
    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-01-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.