The Impact Of Foreign Direct Investment, Renewable Energy Consumption, And Economic Growth On Carbon Dioxide Emissions In Some Asian Countries

Abstract

This study investigates the impact of foreign direct investment, renewable energy consumption and economic growth on carbon dioxide emissions in Asian countries during the period 2005 - 2020 based on the World Bank data. Research method uses panel data to regression in three models: Pooled regression model (Pooled OLS), fixed effect regression model (Fixed Effect Model), random effects regression model (Random Effect Model), then the FGLS (Feasible Generalized Least Squares) method can overcome heteroskedasticity or autocorrelation phenomena while still ensuring unbiasedness. Based on the Environmental Kuznets curve theory and Pollution Haven Hypothesis (PHH) to set an appreciate model, the results indicate that foreign direct investment increase with CO2 emission, in contrast, the higher renewable energy used, the lower carbon dioxide emissions emitted. In the other terms, gross domestic product just increases with CO2 to a certain level of income, then CO2 will decrease even though the higher GDP.