Post-Soviet states and CO2 emissions: the role of foreign direct investment

Raufhon Salahodjaev and Arletta Isaeva

Post-Communist Economies, 2022, vol. 34, issue 7, 944-965

Abstract: Natural resource abundance, growth-oriented strategies and low environmental concern of post-Soviet states may exacerbate the consequences of climate change significantly. This study considers the relationship between CO2 emissions, economic development, foreign investment inflows, trade and energy use in 20 post-Soviet states between 1995 and 2017. A panel cointegration test reveals the long-term cointegrating relationship between the variables. Long-term elasticities are reported using Dynamic Ordinary Least Squares and Fully Modified Ordinary Least Squares regressions, which yield quite similar results: GDP per capita, foreign direct investment (FDI) inflows, trade and energy use positively related to CO2 emissions per capita in the long term. A panel causality test, however, identifies unidirectional causality running from CO2 emissions to energy use at p

Date: 2022
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DOI: 10.1080/14631377.2021.1965360

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