Abstract
Studies on the role of renewable energy consumption and other environmental factors in carbon emission have got considerable attention recently, and they are predicted to get exaggerated in the coming decades. Energy usage increases economic growth and development of a country and backs to global warming and carbon emission which affect the local environment. For the prosperity of a country, it is felt crucial to measure the unavoidable impacts which effect environmental quality. Consequently, the current study investigates the interrelationship of renewable energy consumption, carbon dioxide emission, foreign direct investment, and economic growth in 190 countries of the world for the period of 1980 to 2018. By employing both static and dynamic models, the findings indicate that carbon emission, renewable energy consumption, foreign direct investment, and economic growth affect each other significantly whereas renewable energy consumption has been found beneficial for environmental quality; however, it decreases the inflow of FDI. RE has a decreasing impact, while FDI and carbon emission promote economic growth. The study suggests the promotion of renewable energy resources and policies related to FDI to promote the quality of the environment and achieve economic growth as well.
Highlights
Environmental factors and their association with other variables have been studied by several researchers, and it has been argued that some factors increase carbon emission and vice versa. e role of renewable energy has been considered beneficial for environmental quality in most of the preceding studies where it effects economic growth of a country
The study of Zhu et al [10] shows the negative impact of FDI on carbon emission while they have found the increasing impact of energy consumption on carbon emission. e current study is a comprehensive study which examines the interrelationship of renewable energy consumption, carbon emission, economic growth, and foreign direct investment in the global panel by using dynamic panel models while such kind of studies in a new way have never been conducted before. e study is organized in the given sequence: Section 2 illustrates empirical literature review regarding the association between different variables regarding the current study, Section 3 is composed of the methodology, Section 4 presents the findings of the study, while Section 5 concludes the study
Hanif [15] examined the relationship between economic growth, fossil fuels, solid fuels, renewable energy consumption, and carbon dioxide emission in sub-Saharan Africa for the period from 1995 to 2015. ey have used the GMM model where the findings show that the impact of fossil fuels and solid fuels on carbon emission is positive while renewable energy has a decreasing influence on carbon dioxide emission
Summary
Environmental factors and their association with other variables have been studied by several researchers, and it has been argued that some factors increase carbon emission and vice versa. e role of renewable energy has been considered beneficial for environmental quality in most of the preceding studies where it effects economic growth of a country. E role of renewable energy has been considered beneficial for environmental quality in most of the preceding studies where it effects economic growth of a country. Al-Mulali and SheauTing [1] and Ocal and Aslan [2] examine that the use of renewable energy instead of energy from fossil’ fuels increases economic growth, while on the other hand, Menyah and Wolde-Rufael [3] debated that the use of renewable energy is beneficial for environmental quality while the utilization of renewable energy in most of the countries has not yet reached the desired level to help reduce emission. E current study is a comprehensive study which examines the interrelationship of renewable energy consumption, carbon emission, economic growth, and foreign direct investment in the global panel by using dynamic panel models while such kind of studies in a new way have never been conducted before. The study of Zhu et al [10] shows the negative impact of FDI on carbon emission while they have found the increasing impact of energy consumption on carbon emission. e current study is a comprehensive study which examines the interrelationship of renewable energy consumption, carbon emission, economic growth, and foreign direct investment in the global panel by using dynamic panel models while such kind of studies in a new way have never been conducted before. e study is organized in the given sequence: Section 2 illustrates empirical literature review regarding the association between different variables regarding the current study, Section 3 is composed of the methodology, Section 4 presents the findings of the study, while Section 5 concludes the study
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
