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

Author

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  • 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
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    References listed on IDEAS

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    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. Umar Nawaz Kayani & Roohi Mumtaz & Mochammad Fahlevi & Hassan Nasseredine & Acep Hadinata, 2024. "Unbridling the Economic Growth and Environmental Nexus in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 488-495, January.
    3. Nuno Carlos Leitão, 2024. "The Link between Human Development, Foreign Direct Investment, Renewable Energy, and Carbon Dioxide Emissions in G7 Economies," Energies, MDPI, vol. 17(5), pages 1-19, February.
    4. 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.
    5. 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).
    6. Samrena Jabeen & Ismat Nasim & Furrukh Bashir & David Chaloupský & Ahsan Akbar, 2024. "The Impact of Fossil Fuel Energy, Technological Innovation and Globalization on Tourism Inflows of Top Ten Most Visited Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 664-671, May.

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    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

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