Abstract
This study tests the environmental Kuznets curve while examining the role of renewable energy sources and FDI to potentially effect the amount of CO 2 emissions in Vietnam. Using Autoregressive Distributed Lag (ARDL) approach, the relationship between CO 2 emissions and GDP, FDI and sources of energy consumption has been investigated during 1980–2018 in Vietnam. The results of study reveal that there is non-existence EKC for Vietnam in long run and a sign of inverted U- shape in short run in this period. The analysis also shows that the coefficient of energy consumption from hydro-power renewable sources which correlates to CO 2 emissions is negative and significant while FDI leads to increasing carbon dioxide emissions in the long run. That implies Vietnam could have been benefited from a drop in CO 2 emissions at some point in the early stage of the period, however, the country has been facing environmental pollution increase as GDP and FDI growth. Keywords : Environmental Kuznets Curve, Renewable energy, FDI, Vietnam. JEL Classifications: O44, Q56, Q4 DOI: https://doi.org/10.32479/ijeep.10367
Highlights
Since embarking in 1986 on economic reform, Vietnam has made a remarkable shift to a market economy that has resulted in impressive wealth, trade and investment gains
Descriptive Statistics and Unit Root Tests The variables chosen for this study are the amount of CO2 emissions (CO2), GDP per capita (GDP), annual foreign direct investment (FDI), non-renewable energy consumption including oil and natural gas energy (NONRE1), renewable energy consumption (RE) and total non-renewable energy consumption as oil, natural gas energy and coal energy (NONRE2) in a period of 1980 - 2018
This paper has investigated the relationship between economic growth and environmental degradation in Vietnam by choosing CO2 emission as indicator
Summary
Since embarking in 1986 on economic reform, Vietnam has made a remarkable shift to a market economy that has resulted in impressive wealth, trade and investment gains. During over the past 30 years, the economy has achieved uninterrupted growth, recording an average GDP growth rate around 6.6% a year. Current consumption and production patterns are placing enormous pressure on environment. According to Audinet et al (2016) the carbon intensity of Vietnam’s economy at almost triple the world average and if Vietnam have emitted amount of CO2 at the current pace, it will be projected to rise by 495 million tons of carbon dioxide (MtCO2) in 2030. That would cause environmental degradation, undermine human productivity and limit the economy growth
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