Investigating the impact of renewable energy, international trade, tourism, and foreign direct investment on carbon emission in developing as well as developed countries.

Abstract

Our research examined the renewable energy consumption, foreign direct investment, international trade, and tourism impact on carbon dioxide discharge using system GMM, FMOLS, and DOLS models in selected developed countries of Europe and developing countries of Asia Pacific of the global employment for a period spanning 2000 to 2020. The results indicate that foreign direct investment and tourism comprise a positive affiliation with carbon discharge. Simultaneously, renewable energy utilization with international trade significantly negatively relates to carbon emissions in developed countries. On the other hand, renewable energy consumption, tourism, and global trade play an essential role in increased carbon emissions. Still, carbon dioxide emission decreases by foreign direct investment in developed countries. It is discovered that with long-run estimators, the long-run relationship of variables through carbon discharge in developed and developing countries. The study findings are considered useful in future planning of renewable energy utilization, FDI, tourism policies, and trade openness to improve ecological excellence.