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- Title
The Link between Human Development, Foreign Direct Investment, Renewable Energy, and Carbon Dioxide Emissions in G7 Economies.
- Authors
Leitão, Nuno Carlos
- Abstract
This research evaluates the determinants of pollution emissions, considering the human development index, international trade, renewable energy, and foreign direct investment (FDI) as explanatory variables. This study tests the relationship between trade intensity and FDI on carbon dioxide emissions, considering the arguments of the pollution haven hypothesis (PHH) versus halo pollution (HP). The econometric strategy applies panel data (fixed effects, random effects), a generalised linear model (Gamma), panel cointegration models such as FMOLS and DOLS, the ARDL panel model, and the panel quantile regressions to data from the G7 countries from 1990 to 2019. Before using econometric models, this investigation considers preliminary tests such as the panel unit root test (first and second generation) and the cointegration test. The econometric results show that human development decreased pollution emissions. In addition, renewable energy improves air quality and aims to reduce climate change. The inverted environmental Kuznets curve also supports the results when evaluating the relationship between the human development index and carbon dioxide emissions.
- Subjects
CARBON emissions; FOREIGN investments; RENEWABLE energy sources; GROUP of Seven countries; EMISSIONS (Air pollution)
- Publication
Energies (19961073), 2024, Vol 17, Issue 5, p978
- ISSN
1996-1073
- Publication type
Article
- DOI
10.3390/en17050978