Nexus of innovation, renewable consumption, FDI, growth and CO2 emissions: The case of Vietnam

Abstract

Governments around the world have enacted many policies to reduce environmental pollution and carbon dioxide (CO2) emission. This study aimed to determine and understand the relationship between innovation, renewable energy consumption, foreign direct investment inflows, economic growth and CO2 emission in Vietnam. Information was collected annually based on the annual data of the General Statistics Office of Vietnam and World Bank from 2000 to 2022. The authors use the unrestricted fixed effects to resolve the study problems and using panel data method. The results indicate that innovation positively affects environmental pollution in Vietnam. However, renewable energy consumption has a negative effect on environmental pollution in Vietnam. In addition, FDI inflows and economic growth have strongly positive effects on environmental pollution. This paper also provides some recommendations that can assist Vietnam in developing a green and sustainable economy in the technology revolution 5.0 to achieve the United Nations Sustainable Development Goals (SDGs) over a long-term period.