The foreıgn dırect ınvestments, economıc growth, renewable energy and carbon (CO2) emıssıons nexus: an empırıcal analysıs for Turkey and European Unıon Countrıes

Pınar Çomuk (), Bulent Akkaya (), Serkan Ercoşkun () and Simona Andreea Apostu ()
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Pınar Çomuk: Manisa Celal Bayar University, Banking and Insurance Department, Finance Program
Bulent Akkaya: Manisa Celal Bayar University, Department of Office Management
Serkan Ercoşkun: Manisa Celal Bayar University, Banking and Insurance Department, Finance Program
Simona Andreea Apostu: Bucharest University of Economic Studies & Institute of National Economy

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 12, No 15, 28803-28819

Abstract: Abstract The aim of this study is to investigate the effects of foreign direct investment, economic growth and renewable energy variables on carbon (CO2) emissions belonging to 27 European Union member states and Turkey for the period of 2002–2019 by using a panel data model. In this study, the foreign direct investment variable is used as a share in GDP, the economic growth variable is reflected by the gross domestic product data in dollars per capita, the carbon emission data are estimated in million tons and renewable energy is calculated in total, as share of primary energy supply. The findings obtained from this study indicated the effect of the related variables on CO2 emissions was statistically significant, the impact of foreign direct investment and economic growth on CO2 emissions was positive, and the impact of renewable energy on CO2 emissions was negative. From the evidences obtained from the results of this study, it is seen that countries should apply policies prompting the utilization of clean and renewable energy sources in their economy in order to achieve sustainable economic growth. Properly designed policies in this direction are of vital importance to decrease carbon release and to enable the switching to low-carbon economy.

Keywords: Foreign direct investments; Economic growth; Renewable energy; Carbon (CO2) emission; Panel data analysis; EU countries; Turkey (search for similar items in EconPapers)
JEL-codes: C33 F21 O40 O50 O52 Q20 Q53 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-03382-y

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