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Turning the Curve: Renewable Energy, Higher Education, and the Quest for Low‐Carbon Development in the E‐7

Author

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  • Yu Luo
  • Ze Li
  • Lu Xu
  • Hendrik Gerrit

Abstract

Creating effective policies for sustainable development remains a pressing challenge for emerging economies, where rapid growth often collides with environmental concerns. This study investigates the role of renewable energy (RE), foreign direct investment (FDI), natural resource use, economic growth (GDP), and education (ED) in shaping carbon dioxide (CO2) emissions across E‐7 countries from 1990 to 2024. Using advanced panel econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and the Pooled Mean Group Autoregressive Distributed Lag (PMG‐ARDL) model, the analysis provides robust long‐run estimates while addressing potential endogeneity. The results show that RE and ED significantly mitigate CO2 emissions, reducing them by 0.59% and 0.24%, respectively, whereas FDI inflows and natural resource exploitation increase emissions by 2.6% and 2.93%. GDP displays mixed impacts consistent with the Environmental Kuznets Curve (EKC) hypothesis. Causality outcomes reveal complex bidirectional linkages among RE, ED, GDP, and emissions, underscoring the interconnected nature of development and environmental outcomes. By highlighting the dual role of FDI and integrating education and renewable energy within the EKC framework, this study contributes to the literature on sustainable pathways for emerging economies. The findings suggest that prioritizing investment in renewable energy and human capital is essential for the E‐7 countries to reconcile growth objectives with their commitments to the Sustainable Development Goals (SDGs).

Suggested Citation

  • Yu Luo & Ze Li & Lu Xu & Hendrik Gerrit, 2026. "Turning the Curve: Renewable Energy, Higher Education, and the Quest for Low‐Carbon Development in the E‐7," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2090-2107, April.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:2:p:2090-2107
    DOI: 10.1002/sd.70438
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