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Foreign Direct Investment and Carbon Dioxide Emissions: Evidence from Capital of Vietnam

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  • Ngo Ngoc Minh

    (Industrial University of Hochiminh City, Hochiminh City, Vietnam.)

Abstract

The purpose of this paper is to investigate the relationship between carbon dioxide (CO2) emissions, foreign direct investment (FDI), income per capita and energy consumption (EC) in the capital of Vietnam from 1990 to 2015. The empirical results indicate that EC is a major contributor of environmental degradation while FDI marginally contribute to the current status. Moreover, a one-way causality is found to be running from carbon dioxide (CO2) emissions, EC, FDI to income in the long-run. Then, the new empirical findings suggest that municipal government should make urgent regulations to drastically the EC especially for private cars and motorbikes to improve environmental quality in Hanoi.

Suggested Citation

  • Ngo Ngoc Minh, 2020. "Foreign Direct Investment and Carbon Dioxide Emissions: Evidence from Capital of Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 76-83.
    • Handle: RePEc:eco:journ2:2020-03-9
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    2. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Agyemang Andrew Osei & Mary Donkor, 2021. "Modelling the connection between energy consumption and carbon emissions in North Africa: Evidence from panel models robust to cross-sectional dependence and slope heterogeneity," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 15225-15239, October.
    3. Chin, Min Yee & Qin, Yuting & Hoy, Zheng Xuan & Farooque, Aitazaz Ahsan & Wong, Keng Yinn & Mong, Guo Ren & Tan, Jian Ping & Woon, Kok Sin, 2024. "Assessing carbon budgets and reduction pathways in different income levels with neural network forecasting," Energy, Elsevier, vol. 305(C).
    4. Najma Amin & Saif Ur Rahman & Sukaina Khalid & Sadia Idress, 2024. "How Does Tourism, Trade Openness and Green Energy Influence CO2 emissions? Evidence from ASEAN Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 71-79.

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    More about this item

    Keywords

    Income Per Capita; Inward FDI; Energy Consumption; CO 2 Emissions; Hanoi Capital; Vietnam;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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