Symmetric and Asymmetric Effects of Oil Price, FDI, and Economic Growth on Carbon Emission

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Social Sciences, Mohaghegh Ardabili University, Ardabil, Iran

2 M. A. in Economics, University of Mohaghegh Ardebili, Ardabil, Iran

3 Young Researchers and Elite Club, Ardabil Branch, Islamic Azad University, Ardabil, Iran

Abstract

Empirical literature indicates that environmental degradations as well as carbon emissions are mainly caused by economic activities and subsequently economic growth. On the other hand, the prevailing laws related to the environment, especially carbon emissions and economic growth, are important and complex issues. The aim of the research is to investigate the symmetric and asymmetric effects of oil prices, foreign direct investment and economic growth on carbon emissions. This research is of the regression analysis type. The statistical population of this research includes developed and developing countries, whose economic information and statistics are available in the World Bank database. In this research, the library method was used to collect information and also to obtain the data and information needed to estimate the model in the period of 1963-2023, from the database of the World Bank, Table (PWT) and from the information of Fraser and Carto Institute Used. In this study, ARDL and non-linear ARDL methods are used to investigate the long-term and short-term symmetric and asymmetric relationship between variables. The findings of this research show that regarding the relationship between oil price and carbon emission, in developed and developing countries, the amount of carbon emission has an inverse and asymmetric relationship with oil price. Regarding the relationship between economic growth and emissions, the results show that there is a positive but asymmetric two-way relationship between economic growth and carbon emissions in the target countries. Regarding the relationship between FDI and emission in developing countries, foreign direct investment and carbon emission have a direct and positive relationship and in developed countries they have a negative relationship, and from the perspective of the symmetry and asymmetry of the effect of foreign direct investment, the results obtained in different countries are contradictory and different.

Keywords

References

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Green Development Management Studies
Volume 3, Issue 1 - Serial Number 5
April 2024
Pages 245-268

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