Economic Globalization, Renewable Energy, and CO2 Emissions in Selected Emerging Countries

Xenaneira Shodrokova, Anna Yulianita and Abdul Bashir

Journal of Applied Economic Research, 2024, vol. 23, issue 3, 602-622

Abstract: The phenomenon of economic globalization (EG) has a significant impact on CO2 emissions in emerging countries. This research seeks to examine the influence of EG and renewable energy consumption (REC) on CO2 emissions by utilizing secondary data from the World Bank spanning the years 2000 to 2022. The study hypothesizes that EG contributes to higher CO2 emissions, whereas the REC leads to a reduction in CO2 emissions. This study uses the Data Regression Results Panel with a Random Effect Model to analyze the data. The results show that EG contributes to economic growth accompanied by increased CO2 emissions. Rapid increases in economic activity and industrialization, often driven by FDI and international trade, lead to increased use of fossil energy and CO2 emissions. These findings support the pollution haven hypothesis that suggests that high-polluting production tends to move to countries with looser environmental regulations. However, the study also found that increased REC is associated with a decrease in CO2 emissions. The theoretical significance of the results of this study shows that while EG can drive economic growth, it also has a negative impact on the environment. In practical terms, this research underscores the necessity for policies that promote the use of renewable energy, enhance energy efficiency, and enforce stringent environmental regulations to mitigate the adverse environmental effects of economic globalization. Measures such as the promotion of renewable energy, the transfer of green technologies, increasing public awareness of environmental sustainability, diversifying the economy into greener sectors, and developing green infrastructure are essential.

Keywords: economic globalization; renewable energy; CO2 emission; emerging countries (search for similar items in EconPapers)
JEL-codes: Q27 Q54 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:23:y:2024:i:3:p:602-622

DOI: 10.15826/vestnik.2024.23.3.024

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