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How Do Green Investments, Foreign Direct Investment, and Renewable Energy Impact CO 2 Emissions? Measuring the Role of Education in E-7 Nations

Author

Listed:
  • Pengtao Xu

    (School of Economics, Zhejiang University, Hangzhou 310000, China
    Hangzhou Finance and Investment Group CO., Ltd., Hangzhou 310000, China)

  • Jianguang Zhang

    (Hangzhou Finance and Investment Group CO., Ltd., Hangzhou 310000, China)

  • Usman Mehmood

    (Department of Political Science, University of Management and Technology, Lahore 54792, Pakistan)

Abstract

The COP27 conference establishes fresh objectives for global economies to achieve the goals outlined in the Paris Agreement, which are centered on reducing carbon (CO 2 ) emissions and constraining the rise in global temperatures to 1.5 °C. In this background, this study looks at how education has affected CO 2 emissions, the economy, the use of renewable energy, green investments, and foreign direct investment in the E-7 countries from 2000 to 2021. Two unit root tests, CADF and CIPS, were used to gauge the data’s stationarity. The long-run coefficients were identified using the momentum quantile regression approach. The empirical results show a cointegration of the variables. Long-term CO 2 emissions are influenced by a variety of factors, including foreign direct investment, economic growth, green investments, and education. The outcomes of reliable statistics provide support for the overall empirical study of groups and the economy. The results also suggest that there is a significant increase in education, leading to a reduction in CO 2 emissions across long time periods. Additionally, the E-7 countries should place a high priority on boosting the use of renewable energy and investing in the expansion of higher education for sustainable development. To mitigate the rise in carbon dioxide emissions (CO 2 em), it is recommended that the governments of the E-7 nations take measures to promote the adoption of green investments. Governments must prioritize their efforts to ensure that green financing policies are able to complement environmental welfare policies and green growth policies.

Suggested Citation

  • Pengtao Xu & Jianguang Zhang & Usman Mehmood, 2023. "How Do Green Investments, Foreign Direct Investment, and Renewable Energy Impact CO 2 Emissions? Measuring the Role of Education in E-7 Nations," Sustainability, MDPI, vol. 15(19), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14052-:d:1245269
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