The role of education in moderating the impact of development on environmental sustainability in OECD countries

Abstract

This study explores the interconnections among industrialization, urbanization, Foreign Direct Investment (FDI), and carbon emissions (CO2e) across 31 OECD (Organization for Economic Cooperation and Development) countries from 1998 to 2020. In addition, it analyzes how education moderates these relationships. This study employs CO2e as the explained variable, while industrialization, urbanization, and FDI serve as explanatory variables, with education as a moderator. This research utilized Hierarchical regression analysis to examine how education moderates the associations among industrialization, urbanization, FDI, and CO2e. Additionally, to validate the reliability of our results, we utilized the Generalized Method of Moments (GMM). The results of this study imply that CO2e levels increase with the level of industrialization and urbanization. The pursuit of education also contributed to the increase in CO2e. Moreover, education and industrialization have detrimental effects on CO2e. To fill this gap in the existing literature, this study investigates the relationship between industrialization, urbanization, FDI, and CO2e, a domain with scarce empirical investigations. Furthermore, this study contributes uniquely to the literature by investigating the moderating influence of education on the relationships between independent variables and CO2e. This original aspect of this research aims to enhance our understanding of the complex connections between these factors.