The Relationship between Inward Foreign Direct Investment, Economic Growth and Carbon Emissions: A Case of Italy from G7 Countries

Autor: Farrukh Nawaz, Misbah Sadiq, Mohammad Salem Oudat, Khalil Abu Saleem, Umar Kayani, Mrestyal Khan
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: International Journal of Energy Economics and Policy, Vol 14, Iss 5 (2024)
Druh dokumentu: article
ISSN: 2146-4553
DOI: 10.32479/ijeep.16329
Popis: Recently, a significant amount of carbon dioxide emissions has grabbed the attention of global community. Thus, this study attempts to investigate the impact of inward foreign direct investment, and economic growth on carbon dioxide emissions in case of Italy. We took Italy as our sample country as it has committed to achieve carbon neutrality by 2050. We took annual time series data for the dependent variable (CO2) and explanatory variables (GDP, FDI, Natural Resources) for the period ranging from 1990 to 2021. To examine the long run relationship between the variables we used autoregressive distributed lags bounds test of cointegration. The empirical findings revealed the existence of long-run relationships among the variables of the model. Furthermore, we also found that natural resources unidirectionally caused CO2 and GDP.
Databáze: Directory of Open Access Journals