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Sustainable growth and the reduction of environmental pressures are important priorities that are issues of concern for both developed and developing countries. However, while carbon emissions and ecological footprint are commonly used by researchers in the context of environmental deterioration, a broader and more extensive metric for ecological quality is considered necessary. From this perspective, the load capacity factor provides a more detailed sustainable environment appraisal by simultaneously considering biocapacity and ecological footprint. Limited studies have examined the determinants of load capacity factor (LCAP). This survey attempts to fill the gap, using the case of Japan. Employing the dynamic ARDL approaches, the present research investigates the effect of renewable energy usage, economic growth, economic complexity, financial development, and trade globalization on load capacity factor in Japan for the period between 1980 and 2017. The empirical evidence indicates that economic complexity, economic growth, and financial development adversely impact LCAP, whereas renewable energy usage and trade globalization positively affect LCAP. Hence, we recommend that it is essential for Japan to attain self‐sufficiency in essential goods and minimize its reliance on the rest of the world. Furthermore, policymakers should capitalize on the benefits of trade globalization by adopting additional measures aimed at facilitating trade liberalization. [ABSTRACT FROM AUTHOR]

Globally, economies have become complex and new technologies have transformed and facilitated the modernization of economies. In the previous literature, economic complexity approach has become one of the popular tools in the development and innovation studies of economic geography. Researchers have found that green technology and eco-innovation approaches should be used to decisively reduce the effects of carbon emission on the environment. However, debates about the impact of economic complexity on environment remain unsettled since some emerging production technologies have far-reaching pollution effects. This study explored the impacts of economic complexity on environmental sustainability in Turkey using the novel Fourier-based approaches, namely: Fourier Augmented Dickey-Fuller (FADF) and Fourier autoregressive-distributed lag (FARDL) models. The Fourier-based approaches indicated that all variables (economic complexity index (ECI), GDP, energy consumption, and CO2 emission (CO2E)) are cointegrated in the long run. Additionally, the FARDL model implied that (i) in the long run, the effect of ECI (as a proxy for economic complexity), GDP (as a proxy for economic growth), and energy consumption on CO2E (as a proxy for environmental quality) is important; (ii) economic complexity decreases environmental degradation in Turkey; and (iii) economic growth and energy consumption negatively affect environmental quality. The results also showed that economic complexity could be used as a policy tool to tackle environmental degradation. The findings also revealed that the fossil fuel-based economy will continue to expand and undermine Turkey's efforts to meet its net zero emission target by 2053. Therefore, policy-makers should take actions and establish diversified economic, environmental, and energy strategies. For policy insights, the Turkish governments can use the combination of tax exemptions and technical support systems to support knowledge creation and the diffusion of environmentally friendly technologies The governments can also impose strict environmental regulations on the knowledge development phases. [ABSTRACT FROM AUTHOR]

This paper aims to capture the effect of environmentally related taxes on environmental quality in Canada while controlling economic growth, financial development, and energy consumption over the period of 1990Q1 to 2020Q4. The present study employs novel econometric approaches, namely, the nonlinear autoregressive distributed lag (N-ARDL) test and the gradual shift causality (GS-C) test. The outcomes of the study reveal that (i) there is long-run cointegration equation between environmental taxes (E-TAX), carbon dioxide emissions (CO2E), economic growth (ECG), financial development (FD), and primary energy consumption (PREC); (ii) E-TAX causes to decrease in environmental degradation in Canada; (iii) PREC and ECG increase (and cause) environmental degradation in Canada; and (iv) financial development also positively affect the environmental sustainability. This effort may also be of great importance for policymakers and decision-makers to better understand the factors of environmental degradation for developing effective tax policies that will alleviate human impacts and contribute to reducing environmental degradation. [ABSTRACT FROM AUTHOR]

Climate change can be mitigated and policies can be catalyzed with the aid of financial institutions. By maintaining and strengthening financial stability, the financial sector's resilience could help mitigate climate‐related risks and uncertainties. Hence, an empirical investigation on the effect of financial stability on consumption‐based CO2 emissions (CCO2E) in Denmark is long overdue. This study investigates the financial risk‐emissions relationship in the presence of energy productivity, energy consumption, and economic growth in Denmark. Furthermore, by adopting an asymmetric approach to analyze the time series data for the period between 1995 and 2018, this study helps bridge this major gap in the literature. By adopting the nonlinear autoregressive distributed lag approach (NARDL), we discovered that the positive variation in financial stability causes a reduction in CCO2E, but the neutral connection was reported between the negative shock in financial stability and CCO2E. The positive shock in economic growth and energy consumption intensifies CCO2E; however, a neutral interaction exists between the negative shock in economic growth and CCO2E. The negative shock in energy consumption has a positive effect on CCO2E, indicating a mitigating implication on environmental degradation. In addition, a positive shock in energy productivity enhances environmental quality, while a negative shock in energy productivity increases environmental degradation. In light of the results, we suggest some robust policies for Denmark and other smaller but wealthy nations. Moreover, in order to develop sustainable finance markets, policymakers in Denmark need to mobilize both public and private finance while maintaining a balance with other economic needs of the nation. The country must also identify and understand potential avenues for scaling up private financing for mitigating climate risk. Integr Environ Assess Manag 2023;19:1485–1494. © 2023 SETAC Key Points: Positive shock in financial stability mitigates consumption‐based CO2 emissions, while the negative shock has neutral effect on consumption‐based CO2 emissions in Denmark.‐. A positive shock in energy productivity enhances the environmental quality, while a negative shock in energy productivity promotes ennvironmental degradation [ABSTRACT FROM AUTHOR]

There is a body of evidence that financial development contributes to the quality of the environment, either positively or negatively. However, a limited number of studies consider the effect of financial stability or financial risk on environmental degradation. As part of the proposed research, the present study contributes to the existing literature on asymmetric financial stability's impact on Ireland's environmental quality, as a major gap needs to be added to the literature. Based on this aim, the present study explores the effect of financial stability on environmental degradation in Ireland while controlling primary energy consumption, economic growth, and renewable energy in Ireland. The study employs a novel Fourier autoregressive distributed lag model (FARDL) approach for Ireland, covering the period 1990Q1‐2019Q4 with quarterly data. FARDL cointegration test results indicate a long‐term relationship between financial stability, primary energy consumption, renewable energy consumption, and CO2 emissions. The outcomes from the long‐term coefficient estimation model based on the FARDL model reveal that (i) financial stability leads to a decrease in environmental degradation in Ireland; (ii) renewable energy consumption promotes environmental sustainability; (iii) primary energy consumption has a negative effect on Ireland's environmental quality. These results denote that Ireland should enhance financial stability and promote renewable energy to reduce fossil fuel consumption to achieve net‐zero targets by 2050. Ireland to implement long‐term financial stability policies to fill the emission gap and achieve a net zero emissions target by 2050. Specific policy recommendations for Ireland's environmental policies are also discussed in the study. [ABSTRACT FROM AUTHOR]

This study aims to examine the asymmetric and long‐run effects of energy productivity on the quality of the environment in Sweden. It covers the time series data from 1990Q1 to 2019Q4. Sweden was the first country in 1972 to host a United Nations conference on the environment. Unlike other countries in Europe, Sweden is cognizant of an innovative environment; it hopes to achieve 100% of its electricity from renewable sources by 2040 and lead the way towards a low‐carbon community. The novelty of this study lies in the thorough analysis of how energy productivity affects the quality of the environment in Sweden while controlling for economic growth, trade openness, and financial development utilizing the non‐linear ARDL approach and other robust econometric techniques. Precisely, (i) results indicate non‐linear and asymmetric effects of the variables over long‐term horizons; (ii) energy productivity benefits the environment by lowering CO2 emissions (CO2E) in the long term; (iii) a growth in trade openness positively impacts CO2E; (iv) an increase in financial development and economic growth without eco‐friendly protocols contribute to an increase in CO2E. The findings of this study support the economic theory that energy productivity can stimulate green living and green economic growth. We recommend that policymakers in Sweden invest in energy productivity, pursue R&D that embraces cleaner technologies, and prioritize cleaner, cross‐cutting eco‐friendly policies to combat climate challenges and achieve the long‐term climate policy goals of the EU. [ABSTRACT FROM AUTHOR]

Environmental deterioration is a substantial hazard to sustainable development. To add new dimensions to the discussion. This study aims to consider the impact of patents on environmental technology and environmental degradation in Iceland, along with other indicators, such as economic growth, primary energy consumption (PEC) and trade openness. This effect has not been comprehensively examined in the case of Iceland's economy. To this end, the study adopted novel econometric Fourier‐based estimators. The Fourier‐augmented Dickey–Fuller (F‐ADF) unit root tests, Fourier‐autoregressive distributive lag (F‐ARDL) cointegration test, F‐ARDL for long run estimation, and the Fourier‐Toda and Yamamoto (Fourier TY) causality test to determine the impact of explanatory and control indicators on production‐based CO2 emissions for the period 1995Q1 to 2019Q4. The findings revealed the impact of environmental technology and trade openness is negative and mitigates production‐based CO2 emissions and increases environmental sustainability in Iceland. In contrast, economic growth and PEC were found to have harmful and positive influences on production‐based CO2 emissions and increases environmental deterioration in the region. In addition, the Fourier TY causality test suggests unidirectional causality between these indicators in Iceland and the outcome further confirms that environmental technology and trade openness are vital for decreasing production‐based CO2 emissions in Iceland. Thus, the study findings benefit policymakers in adopting green innovation activities that increase sustainable energy resources and minimize the detrimental effects of a boost in economic activities in Iceland for sustainable development. [ABSTRACT FROM AUTHOR]

Environmental sustainability has been a priority of energy study experts, yet, until recently, the approaches largely ignored innovation issues. This paper investigates the relationship between environmental innovation and environmental sustainability in a Nordic country, Norway, from 1990:Q1 to 2019:Q4. In Norway, climate change, protection of the ozone layer, biodiversity, urbanization, acidification, eutrophication, persistently high toxic waste, and increased fragility have injected volatility and uncertainty into the Norwegians—a reality that may continue for a while. This study is unique in that it uses the nonlinear ARDL approach to analyze in depth how environmental innovation affects environmental sustainability in Norway while controlling for economic growth, renewable energy, and financial development. In particular, the findings reveal that (i) environmental innovation improves the environment in Norway over long-term horizons; (ii) strengthening patents on environmental innovations can foster clean living, green growth, and zero CO2 emissions; (iii) investing in renewable energy sources benefits the Norwegian environment by reducing carbon emission growth; and (iv) economic growth and financial development promote CO2 emission growth. The policy consequence is that Norway's policymakers should continue to invest in cleaner technologies and encourage environmental education and training of employees, suppliers, and consumers. [ABSTRACT FROM AUTHOR]

Due to the incessant quest for economic growth, global energy demand has increased to a level that requires urgent rethinking. The Netherlands depends heavily on traditional energy sources, which are finite and equally emit a lot of greenhouse gasses, causing further environmental destruction. To sustain economic growth and protect the ecosystem, it is crucial for the Netherlands to consume energy efficiently. Given that policy directions are required, this paper investigates the effect of energy productivity on environmental degradation in the Netherlands between 1990Q1 and 2019Q4, using the Fourier ARDL (autoregressive distributed lag) and Fourier Toda–Yamamoto causality approaches. The Fourier ADL estimates indicate that all variables are cointegrated. Additionally, the long-run Fourier ARDL estimates indicate that investments in energy productivity could help reduce carbon dioxide emissions in the Netherlands. Furthermore, the Fourier Toda–Yamamoto causality outcomes suggest that energy productivity, economic growth, and renewable energy consumption have a unidirectional causal effect on CO2 emissions. These revealing outcomes provide significant policy insights for the Netherlands' energy productivity objectives in their new energy policy proposed in 2022. The government could, through the new energy policy, increase investment in smart meters and review existing fossil fuel subsidies and energy trade taxes. Additionally, the government could consider reviewing the Netherlands' economic structure by increasing the share of the primary and tertiary sectors to the rising economic growth to reduce energy consumption. [ABSTRACT FROM AUTHOR]

Despite Portugal's effort to reduce carbon emissions, the country still emits about 1.6% of the European Union's CO2 emissions. Meanwhile, limited empirical studies have been undertaken in the context of Portugal. As a result, this study examines the asymmetric and long-term impact of CO2 intensity of GDP, energy consumption, renewable energy and economic growth on CO2 emissions in Portugal from 1990 to 2019. The nonlinear autoregressive distributed lag (NARDL) is employed to uncover the asymmetric connection. The findings show that there is nonlinear cointegration among the variables. The long-run estimation reveals a positive change in energy consumption positively affects CO2 emissions, while a negative shock in energy consumption has a neutral effect on CO2 emissions. Furthermore, positive shocks of economic growth and CO2 intensity of GDP enhance environmental deterioration by increasing CO2 emissions. Meanwhile, the negative shock of these regressors positively impacts CO2 emissions. In addition, positive shocks in renewable energy enhance environmental quality, while negative shocks in renewable energy increase environmental deterioration in Portugal. Policymakers should focus on reducing per-unit energy usage and CO2 efficiency gains, which would necessitate a significant reduction in CO2 intensity and energy density of GDP. [ABSTRACT FROM AUTHOR]

The study explores the relationship between globalization, GDP, the carbon intensity of GDP, patents, and its effect on consumption-based carbon emissions (CCO2E). For analysis, novel econometric approaches include nonlinear ARDL and Fourier ARDL, and for robustness, dynamic OLS applied. The results from cointegration tests reveal that there exists a significant long-run relationship between CCO2E, globalization, economic growth, patents, and the carbon intensity of GDP. Additionally, the empirical results indicate that only positive shock in patents on environmental innovations have a negative and significant impact on CCO2E, while positive and negative shocks in GDP and carbon intensity of GDP significantly increase CCO2E. However, only a negative shock in globalization demonstrates the increase in CCO2E. Also, dynamic OLS findings confirmed the robustness. Given the outcome, it is recommended that the Danish government be cautious when approving policies intended to increase economic growth, as this could negatively affect environmental sustainability. More so, research and development must contribute to technological advancement in the Danish manufacturing sector. Despite this, it is important to prioritize patent promotion. Patent protection can enable Denmark to develop eco-friendly technologies that can reduce carbon emissions, thus enabling life to be more sustainable by utilizing fewer resources and energy. Denmark can reduce CO2E and foster economic development through a strong patent system on environmental technologies. [ABSTRACT FROM AUTHOR]

This study aims to examine the long-run asymmetric impact of energy productivity on environmental quality in Ireland. The data set covers the period from 1990Q1 to 2019Q4. Although the border issue has been the source of contention and terrorism for decades in Ireland, the country is conscious of modern innovations and has a coherent body of environmental law. Ireland's goal is to achieve 80% of its electricity as renewable energy and reduce carbon emissions by 51% in 2030. Unlike earlier studies, the novelty of this study lies in the thorough analysis of how energy productivity affects the quality of the environment in Ireland while controlling for financial development, primary energy consumption, and economic growth utilizing the nonlinear ARDL approach and other robust econometric techniques. Precisely, the results indicate that (i) energy productivity benefits the environment by lowering CO2 emissions (CO2E) in the long term; (ii) financial sector development enhances the quality of the environment in Ireland; (iii) increase in primary energy consumption and economic growth without eco-friendly protocols propel an increase in CO2E. These findings support the economic theory that energy productivity can stimulate steady green living and green technological growth. We recommend that policymakers in Ireland invest in energy productivity and prioritize R&D that embraces cleaner technologies and cross-cutting eco-friendly policies to combat environmental challenges in Ireland and the world at large. [ABSTRACT FROM AUTHOR]

For Western European countries, many macroeconomic factors that have influenced environmental quality in several studies have been investigated. In this region, no empirical inquiry has explored the relationship between green technologies, renewable electricity, financial development, economic expansion, and eco-quality. To fill this gap, this inquiry is conducted to estimate the role of green technology innovation and green electricity on ecological balance in Western European countries. This study investigates how carbon dioxide emissions (CO2E) may be influenced by its determinants (economic expansion, renewable energy, environmentally friendly technology) through some robust econometric techniques (second-generation panel unit root, Westerlund cointegration, FMOLS, and DOLS). Empirical findings confirm that renewable electricity and environmentally friendly technological innovations reduce CO2E. However, the economic upsurge is positively correlated with CO2E, suggesting that expanding the market has a deterioration effect on environmental quality. Policymakers in this region should allocate more resources to renewable electricity generation capacities and green technologies in order to minimize environmental damage. Further, the promotion of green and low-carbon energy development will contribute to a new form of global environmental governance. [ABSTRACT FROM AUTHOR]

Among the EU countries, Greece relies heavily on coal the most, and it has lagged behind in cutting emissions. Further, following the oil crisis of the 1970s, Greece has strategically invested in lignite. Solid fossil fuels such as lignite are classified as fossil fuels that are detrimental to environmental performance. This continued burning of fossil fuels has emerged as one of the most serious concerns in Greece, even globally. The aim is to capture the effect of energy productivity on carbon dioxide emissions (CO2E) in Greece while controlling trade openness, energy consumption, and economic growth. Toward this end, we employ a nonlinear autoregressive distributed lag (NARDL) model and other econometric robust techniques. The findings of the study are as follows: (i) trade openness positively impacts carbon emissions growth; (ii) economic growth adds to increased CO2E; (iii) expanding energy productivity is beneficial to the environment as it causes CO2E to decline; and (iv) increase in energy consumptions further results in CO2 cutbacks. The recommendation of our study suggests some innovative policies to counter the detrimental effects of carbon emissions by an increase in energy efficiency for the Greek economy. The study recommends that embracing a low-carbon, resource-efficient, and circular economy is of paramount importance to Greece in order to ensure environmental protection, as well as to boost green growth, create new jobs, and combat unemployment. Greece should ensure that energy efficiency techniques are promoted, and renewable energy sources are expanded in order to increase the options for cleaner alternatives and reduce greenhouse gas emissions, thus preserving the environment. [ABSTRACT FROM AUTHOR]

[Display omitted] • We assessed the effect of technological innovation and structural change on carbon emissions in Turkey. • We applied the novel dynamic ARDL and frequency domain causality techniques. • We found that technological innovation enhances the quality of the environment. • We also found nonrenewable energy use and economic growth contribute to environmental degradation. • We found no support for the EKC hypothesis in Turkey. Climate change and environmental degradation have become the most complex and contentious global concerns in recent decades, despite growing worldwide accords demanding that these serious issues must be addressed urgently. Thus, we assessed the effect of technological innovation, economic growth, structural change, and nonrenewable energy use on CO 2 emissions in Turkey using a yearly dataset spanning between 1980 and 2019. The current paper utilized the ARDL bounds test, dynamic ARDL, and Breitung Candelon causality tests to assess these interrelationships. The outcomes of both the ARDL bounds and Bayer and Hanck cointegration tests affirmed evidence of cointegration among the variables. Furthermore, the outcomes of the dynamic ARDL disclosed that economic growth and nonrenewable energy use contribute to the degradation of the environment, while technological innovation stimulates the quality of the environment. Using the approach suggested by Itkonen (2012), the current paper does not confirm the EKC hypothesis. Lastly, the outcomes of the Breitung Candelon causality revealed a feedback causality association between nonrenewable and CO 2 emissions, while a unidirectional causality exists from technological innovation, economic growth, and structural change to CO 2 emissions. Based on the above findings, we propose that the government of Turkey should restructure its energy sector to address both carbon emissions and production losses by boosting the use of eco-friendly and efficient technologies in the process of production, while also shifting to a more services-based economy. [ABSTRACT FROM AUTHOR]

The article titled "Toward a sustainable environment: nexus between consumption-based carbon emissions, economic growth, renewable energy and technological innovation in Brazil" has been retracted by the publisher due to concerns about the peer review process, inappropriate references, nonstandard phrases, and the article's alignment with the journal's scope. The authors Festus Fatai Adedoyin and Dervis Kirikkaleli disagree with the retraction, while author Tomiwa Sunday Adebayo has not responded to correspondence. Springer Nature, the publisher, remains neutral regarding jurisdictional claims and institutional affiliations. [Extracted from the article]

Through an in-depth evaluation of the potential effectiveness of intellectual property protection on environmental technologies, the aim of the present research is to investigate the effect of patents on environmental innovation, energy use, GDP, and trade openness on environmental deregulation in Spain using nonlinear ARDL techniques. Specifically, the study findings indicate that patents on environmental technologies enhance environ-mental sustainability in Spain, as evidenced by the novel results from the nonlinear ARDL. Secondly, our study reveals that Spain's growing economy degrades the quality of the environment. Based on the findings of the study, positive changes in trade openness could have positive effects on Spain's environmental sustainability, suggesting that better productivity, more international trade, and increased economic openness could facilitate an improvement in Spain's environmental impact. Lastly, this study provides evidence demonstrating that Spain's environmental quality could suffer due to excessive energy consumption. In the light of this study's policy recommendations, the policymakers and the Spanish government should encourage collaboration between private and public partnerships on environmental technologies to address global climate change or regional pollution. It is necessary for research and development to contribute to the development of technological progress in the Spanish energy sector; however, promoting patenting should be prioritized. By expanding patent protection, eco-friendly technologies that can combat carbon emissions can be developed swiftly in Spain, which will enable life to be more sustainable by lowering the use of energy and resources. A strong patent protection sys-tem will foster environmentally-friendly technologies and economic development while reducing CO2 emissions in Spain. [ABSTRACT FROM AUTHOR]

This paper examines the impact of economic growth, energy consumption, financial development, and industrialization on environmental degradation in 8 selected ASEAN + 3 countries covering the period 1994–2018. The autoregressive distributed lag model pooled mean group was applied to estimate the long run and short relationship. The fully modified ordinary least squares, dynamic least squares, and seemingly unrelated regression were applied to check the robustness of pooled mean group. Furthermore, panel Dumitrescu and Hurlin causality test was utilized to explore the causal relationships among the variables. The results of cointegration tests confirm the presence of the long run cointegration relationship. The empirical findings, in the long run, demonstrate that the elasticity of economic growth is negatively interrelated to environmental degradation. The elasticities of energy consumption and financial development showed a positive relationship with environmental degradation. The elasticity of industrialization has a negative connection with environmental degradation. The robustness results show some conflict with the autoregressive distributed lag model pooled mean group results. Dumitrescu Hurlin panel causality demonstrates a bidirectional causality between economic growth and environmental degradation, energy consumption and environmental degradation, and economic growth and energy consumption. These results confirm that energy consumption and financial development harm environmental quality in selected countries through exudating more CO2 emissions in space, while economic growth and industrialization reduce environmental degradation by mitigating exudate CO2 emissions. [ABSTRACT FROM AUTHOR]

Although numerous studies in the literature have been conducted to model CO2 emissions, there is a lack of empirical knowledge of consumption‐based CO2 emissions, which are adjusted for international trade, specifically. Therefore, the present study aims to close this gap in the literature in the case of Italy, while capturing the asymmetric effect of trade, renewable energy, and economic growth on consumption‐based CO2 emissions. The present study uses the Gregory–Hansen test for cointegration with regime shifts, Markov switching regression, nonlinear autoregressive distributed lag (NARDL), and frequency domain causality test. The study's outcomes reveal that (1) the asymmetric effect of import on consumption‐based CO2 emissions is positive, implying that rising import is associated with declining consumption‐based environmental quality; (2) export, renewable consumption, and economic growth reduce consumption‐based CO2 emissions in Italy. Moreover, these outcomes are supported by the outcomes of the frequency domain causality test. These innovative insights may prompt policy‐makers to implement eco‐friendly methods, such as renewable energy distribution and environmental innovation, to achieve a greener future. Integr Environ Assess Manag 2022;18:784–795. © 2021 SETAC Key Points: Rising import is associated with declining the consumption‐based environmental quality.Export, renewable consumption, and economic growth reduce consumption‐based CO2 emissions. [ABSTRACT FROM AUTHOR]

The consequences of global trade on carbon dioxide emissions have been mainly investigated in several empirical papers; however, the consumption-based carbon emissions adjusted for international trade have been lacking in the literature. This empirical research seeks to address this gap by using consumption-based carbon emissions adjusted for trade in the case of Bolivia. Research over the years shows that Bolivia has had a consistent negative trade deficit which suggests that there might be a rise in consumption-based emission in this area in the present and the future. It also indicates that considerable emissions are attributable to the consumption of commodities and services transferred to Bolivia, which is beyond its control. Many studies, however, have delved into the production-based carbon emission for Bolivia. However, the consumption-based carbon emission adjusted for international trade has been missing in the case of Bolivia. Meanwhile, failure to recognize these emissions related to international trade produces an incomplete picture of the emissions triggers and the effectiveness of action to lessen emissions in this area. Hence, this study attempts to fill the gap. The impact of exports and imports are analyzed separately for 1970 to 2018. The empirical analysis confirms a negative effect of exports and GDP on consumption-based carbon emissions. In comparison, imports and globalization demonstrate a favorable impact on consumption-based carbon emissions and show their statistical significance. This study suggests that the Bolivia government should be cautious on policies targeted at increasing growth as this could be harmful to the sustainability of the environment. [ABSTRACT FROM AUTHOR]

This study aims to investigate the relationship between carbon emissions (CO2) and economic policy uncertainty for East Asian countries. During recent decades, climate change has become a severe issue globally. To our understanding, the impact of economic policy uncertainty (EPU) on CO2 emissions has not been thoroughly studied in the environment-energy literature. To overcome this research gap, this study explores the link between EPU, CO2 emissions, foreign direct investment (FDI), and renewable energy for the panel of four East Asian economies, namely, China, Japan, South Korea, and Singapore, from 1997 to 2020. We used second-generation econometric estimations to confirm cross-sectional dependence, cointegration, and stationarity among the selected variables. This study finds that economic policy uncertanity (EPU), trade, and GDP have a positive correlation with carbon emissions. However, FDI and renewable energy consumption boost the quality of the environment of East Asian economies. The outcomes of the Dumitrescu–Hurlin panel causality estimation revealed two-way association between CO2 and economic policy uncertainty, CO2 and energy consumption, CO2 and economic growth, and CO2 and trade. Afterward, we use the FMOLS estimations for robustness check. Based on the inclusive outcomes, we draw substantial suggestions for decision-makers and urge them to consider the potential negative effects of EPU on CO2 emissions policies. In addition to this, if policymakers seek to simultaneously control EPU and CO2 emissions, they should work out for alternate ways such as the use of green technology related to energy, foreign capital investment, and renewable energy consumption to mitigate CO2 emissions. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the effect of financial development and renewable energy consumption on consumption‐based CO2 emissions in Chile while controlling for economic growth and electricity consumption. Based on the aim of the paper, autoregressive distributed lag (ARDL) bounds with Kripfganz and Schneider's (2018) approximations, fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), and gradual shift causality tests are applied in this study. The outcomes clearly reveal that while financial development and renewable energy consumption reduce the consumption‐based CO2 emissions in Chile, economic growth and electricity consumption increase consumption‐based carbon emissions. The gradual shift causality test provides consistent results with ARDL, FMOLS, and DOLS estimators. Therefore, policymakers in Chile should dynamically encourage the research and development of low‐carbon technologies and renewable energy investments while imported nonrenewable energy sources level should be targeted, and especially those sectors which are more energy‐intensive and causing to increase in consumption‐based CO2 emissions. [ABSTRACT FROM AUTHOR]

Environmental degradation stemming from the combustion of conventional energy sources is not only a major factor behind climate change but it also poses an adverse impact on human health. Undoubtedly, fossil fuels are major drivers of economic growth; however, their detrimental environmental impacts are of global concern. In the literature, there is no comprehensive empirical evidence on the linkage between the use of different energy sources and carbon dioxide emissions in the context of Russia, a nation that is ranked third in the list of the top carbon dioxide-emitting global countries. Hence, this paper aims to scrutinize the relationships between oil consumption, natural gas consumption, coal consumption, and carbon dioxide emissions controlling economic growth for Russia over the 1990–2016 period. The findings from the econometric analysis indicate that carbon dioxide emissions in Russia have long-run associations with economic growth and consumption of oil, gas, and coal. The long-run elasticity estimates reveal that economic growth is not directly harming Russia's environmental quality. However, higher oil, gas, and coal consumption degrades environmental quality by boosting the level of carbon dioxide emissions in Russia. In addition, the results from the Granger causality analysis confirm the existence of both long and short-term causal connections among the variables of concern. In line with these findings, several policy recommendations to address the environmental challenges in Russia are put forward. [ABSTRACT FROM AUTHOR]

To tackle the issue of climate change and environmental degradation debates regarding carbon neutrality is on the rise. Regional Comprehensive Economic Cooperation (RCEP), the leading trading union, covers nearly third of global economy, world population, is responsible for thirty percent of global trade and global gross domestic product. The existent study tests the impact of financial, economic, political, and composite risk on consumption-based carbon dioxide emissions (CCO2) in selected RCEP economies during the period of 1990 to 2020. The empirical analysis consists of cross-sectional dependence, slope heterogeneity, cross-sectional augmented panel unit root test, Westerlund cointegration, second-generation cross-section augmented autoregressive distributed lags model (CS-ARDL), and panel causality test. Further, we explore the role of imports, renewable energy supply, exports, and gross domestic product per-capita on CCO2. The empirical results suggest that the less political risk help to mitigate while the lower financial, economic, and composite risk increase CCO2 emissions in selected RCEP economies. Moreover, exports and renewable energy supply show mitigating effect, whereas imports show upsurge in CCO2. Additionally, a bidirectional causality exists between exports and CCO2, imports and CCO2, GDP per-capita and CCO2, political risk and CCO2, and renewable energy and CCO2 emissions, while a one-way causality from financial risk, composite risk, and economic risk to CCO2. Renewable energy supplies along with the improvement in sub-components of political risk, for instance, corruption, government stability, would help to effectively tackle the issue of CCO2 emissions. [ABSTRACT FROM AUTHOR]

This research examines the factor of causality between the variables of economic growth and carbon emissions in China, by conducting full, and sub-sample Granger causality tests for the period of 1965 to 2019. The full-sample Granger causality test is not considered to be authentic, and is rather unstable, as indicated by the parameter stability tests. Therefore, we consider the time variation using a causality test, and the results indicate that the causality exists from the Gross Domestic Product (GDP) growth to the Carbon Dioxide (CO2) emissions. This development essentially suggests that economic growth is critical for China's environment. It also implies that carbon emissions are mainly determined by the increase in economic growth, at some specific period in time. Thus, in this regard, the use of renewable energy sources should be encouraged by policymakers, in order to deal with rise in the energy demand, and promote industrial upgrading, so as to slow down the rate degradation that the environment have been experiencing. However, our empirical results indicate that CO2 emissions are not the Granger reason to GDP. In this case, the government can formulate more conservative reduction policies that pertain to carbon emissions, and will therefore, not impede the economic growth. [ABSTRACT FROM AUTHOR]

On the role of financial inclusion in terms of promoting a sustainable environment, very limited number of studies are available in the existing literature. These studies do not directly address or link financial inclusion with carbon dioxide emissions. Therefore, this study aims to specifically investigate the effects of financial inclusion on carbon dioxide emissions along with the role of globalization and renewable electricity generation for the case of the emerging seven economies over the 2004–2016 period. This study uses panel quantile regression analysis for estimations, which takes into account the non‐normality issue of the data. The long‐run relationships among carbon dioxide emissions, financial inclusion, renewable electricity generation, globalization, and economic growth are confirmed by Kao and Johansen panel cointegration tests. Besides, the results from quantile regression analysis confirmed that financial inclusion is linked with carbon dioxide emission reductions at the 25th and 50th quantiles; however, it cannot explain the variations in the carbon dioxide emission levels at the 75th and 95th quantiles. Moreover, globalization and renewable energy electricity are found to curb carbon dioxide emissions at all quantiles. Further, the results confirmed the EKC hypothesis for E7 countries at all the quantiles. In line with these findings, this study recommends enhancing financial inclusivity, promoting globalization, elevating renewable electricity generation capacities, and ensuring greener economic growth to lower down the carbon dioxide emission levels across the E7 countries. [ABSTRACT FROM AUTHOR]

This research investigates the drivers of consumption-based carbon emissions in Brazil by using a dataset covering the period between 1990 and 2018. These dynamics were examined by employing the ARDL bounds, DOLS, and gradual shift causality tests. The ARDL long- and short-run estimation outcomes reveal that: (a) renewable energy use stimulates the sustainability of the environment; (b) economic growth increases environmental degradation; and (c) technological innovation enhances the quality of the environment. In addition, the gradual shift causality test results disclosed that renewable energy consumption, economic growth, technological innovation and public-private partnership investment in energy can predict consumption-based carbon emissions in Brazil. Therefore, Brazilian policymakers should actively encourage the R&D of low-carbon technologies and renewable energy consumption. Domestic consumption levels, on the other hand, should be targeted, specifically those that are more energy-intensive and cause a rise in CO2 emissions due to consumption. [ABSTRACT FROM AUTHOR]

This study provides new insight by introducing the role of fiscal decentralization and natural resources rent in affecting CO2 emissions. For assessing this objective, this paper use panel data from seven highly fiscal decentralized Organization for Economic Cooperation and Development (OECD) countries from 1990 to 2018. For empirical analysis, we use the Westerlund test and cross-sectional autoregressive distributive lag model. In order to ascertain the integration order of variables, the study utilizes the Pesaran second-generation unit-root test. The findings reveal that all the variables are stationary at first difference. The long-run results confirm that fiscal decentralization and natural resources rent improve the atmosphere by reducing CO2 emissions. Moreover, gross domestic product and total natural resources rent increase, while improvement in institutional quality reduces CO2 emissions. For policy implication, this study recommends that transferring the power to the local governments will further reduce CO2 emissions and shift these countries to more environmentally friendly sources. [ABSTRACT FROM AUTHOR]

In recent years, a growing number of scholars have employed various proxies of environmental degradation to understand the reasons behind rising environmental degradation. However, very few studies have considered consumption-based carbon emissions, even though a clear understanding of the impact of consumption patterns is essential for redirecting the pattern to more sustainable consumption. Thus, this study takes a step forward by using consumption-based carbon emissions (CCO2) as a proxy of environmental degradation using the novel non-linear ARDL technique for Chilefrom 1990 to 2018. To the best understanding of the investigators, no prior studies have investigated the drivers of consumption-based carbon emissions utilizing non-linear ARDL. The study employed ADF and KSS (non-linear) tests to check the data series' stationary level. Additionally, the symmetric and asymmetric ARDL approaches are utilized to explore cointegration and long-run linkages. According to the results, there is no symmetric cointegration among the variables; however, the empirical estimates reveal a long-run asymmetric connection between the indicators and CCO2 emissions. The novel results from the asymmetric ARDL indicate that negative and positive changes in economic growth deteriorate the quality of the environment. Interestingly, a reduction in economic growth makes a more dominant contribution to environmental degradation. Moreover, positive changes in renewable energy usage improve the quality of Chile's environment, inferring that the country can achieve a reduction in environmental degradation by boosting renewable energy consumption. Surprisingly, the study found that technological innovation is ineffective in reducing consumption-based carbon emissions, which implies that Chile's technological innovation is not directed towards manufacturing green technology. Finally, the policy implications are discussed with respect to reducing consumption-based carbon emissions. [ABSTRACT FROM AUTHOR]

The present study aims to explore the long‐run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global framework. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency‐domain causality tests are employed. Empirical evidence confirms the existence of a long‐run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long‐run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global framework, the study, therefore, recommends that in order to increase environmental quality, global policy‐makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries. [ABSTRACT FROM AUTHOR]

The present study explores the effect of renewable energy consumption and public-private partnership investment in energy on consumption-based carbon dioxide emissions for India from 1990Q1 and 2015Q4 whilst controlling technology innovation and economic growth. The study employs the Maki cointegration, Bayer-Hanck cointegration, fully modified ordinary least squares, dynamic ordinary least squares, and frequency-domain causality tests to explore these dynamics. The outcomes of the present study reveal that (i) there is a long-run cointegration equation between consumption-based carbon dioxide emissions and its possible determinants; (ii) whilst renewable energy consumption is beneficial for lowering consumption-based carbon dioxide emissions, public-private partnership investment in energy makes a positive contribution to consumption-based carbon dioxide emissions in the long-run; and (iii) public-private partnership investment in energy and renewable energy consumption also significantly causes consumption-based carbon dioxide emissions at different frequency levels in India. The present study recommends that policymakers in India should apply a series of policies to discourage the use of non-renewable energy and raise the share of renewable energy in order to reduce consumption-based carbon dioxide emissions in the country. The present study also recommends that public-private partnership investment in renewable energy should increase to achieve cleaner production processes. [ABSTRACT FROM AUTHOR]

This paper examines the asymmetric and long-run effect of energy productivity on the quality of the environment in Finland. Finland, as one of the Nordic countries, is a major contributor to the global drive to achieve decarbonization by 2050. In effect, this study seeks to contribute to the strides by querying the extent to which shocks in energy productivity make or mar the sustainability of the Finland environment from 1990:Q1 to 2019:Q4. The other impacts of financial development, economic growth, and trade openness are considered in the model estimated by using the novel hidden panel cointegration and nonlinear autoregressive distributed lag (NARDL) methodology. The results reveal a significant asymmetric equilibrium cointegration relationship among the variables over long-run time horizons; energy productivity utilization enhances the quality of the environment in Finland over the long run while trade openness, financial development, and economic growth contribute to environmental degradation in Finland in the long term. In particular, a 1% positive and negative fluctuation in energy productivity lowers carbon emissions by 1.79442% and 0.84799% in the long term. Whereas 1% change in trade openness, financial development, and economic growth trigger CO 2 emissions (CO 2 E) by 1.15298%, 0.271365%, and 2.93402% in Finland's economies. The results of the frequency domain causality model corroborate the NARDL results. On the basis of these empirical findings, this study suggests that policymakers in Finland should consider the asymmetric behavior among these variables in setting their trade, environmental, growth, and energy policies. [Display omitted] • The effect of energy productivity on environmental degradation in Finland is examined. • Nonlinear ARDL, Fourier ADL cointegration and frequnecy domain causality tests are employed. • Energy productivity leads to lower environmental degradation in Finland. • Energy productivity causes environmental sustainability at different frequencies. [ABSTRACT FROM AUTHOR]

To achieve zero carbon or achieving carbon neutrality target is of great importance to many countries around the globe especially post Paris climate agreement. This study, unlike previous studies, evaluates the role of environmental policy, green innovation, composite risk index, and renewable energy R&D in achieving carbon neutrality targets for G7 economies from 1990 to 2019. The results confirmed the validity of the EKC hypothesis for G7 economies. Further, the result shows that environmental policy, green innovation, composite risk index, and renewable energy R&D help control carbon emissions. In contrast, income reveals a positive influence on environmental degradation. Furthermore, bidirectional causality has been reported in environmental policy, composite risk index, green innovation, and the CO 2 emissions, while unidirectional causality running from GDP and renewable energy R&D to CO 2 emissions. Based on the empirical findings, it is suggested that environmental policies should be strengthened, promote green innovation and renewable energy research and development expenditures, and political stability and institutional quality must be stabilized to lowers sectoral risks that would help a sustainable environment. • Environmental Kuznets Curve is valid for G7 economies. • Green innovation, composite risk index leads to achieving carbon neutrality. • Environmental Policy and Renewable Energy R&D helps combat carbon emissions. • Bidirectional causality exists between policy, risk index, and CO 2 emissions. [ABSTRACT FROM AUTHOR]

This empirical study assesses the effect of CO2 emissions, urbanization, energy consumption, and agriculture on Thailand's economic growth using a dataset between 1970 and 2018. The ARDL and the frequency domain causality (FDC) approaches were applied to assess these interconnections. The outcome of the bounds test suggested a long-term association among the variables of investigation. The ARDL outcomes reveal that urbanization, agriculture, energy consumption, and CO2 emissions positively trigger Thailand's economic growth. Additionally, the frequency domain causality test was used to detect a causal connection between the series. The main benefit of this technique is that it can detect a causal connection between series at different frequencies. To the understanding of the authors, this is the first study in the case of Thailand that will apply the FDC approach to capture the causal linkage between GDP and the regressors. The outcomes of the causality test suggested that CO2 emissions, urbanization, energy consumption, and agriculture can predict Thailand's economic growth in the long term. These outcomes have far-reaching implications for economic performance and Thailand's macroeconomic indicators. [ABSTRACT FROM AUTHOR]

The spread of the COVID-19 pandemic since the end of 2019 has forced an unprecedented lockdown worldwide, and environmental quality was significantly affected by the pandemic and its induced lockdown. The objective of this study is to examine the role of renewable energy, non-renewable energy and COVID-19 case on CO 2 emission in the context of United Kingdom. Several non-linear techniques such as Fourier ADL cointegration test, Non-Linear ARDL, Markov switching regression, and Breitung and Candelon (BC) causality test are employed to attain this objective. The result reveals that there is long run cointegration among the variables in this study. The results demonstrate that positive (negative) shift in renewable energy development decrease (increase) CO 2 emissions while positive (negative) shocks in fossil fuel energy increase CO 2 emissions. Moreover, negative (positive) variation in COVID case leads to a decrease (increase) in CO 2 emissions. Moreover, an uni-directional causal impact was found to run from all the variables – renewable energy, fossil fuel, and COVID-19 case to CO 2 emissions. Finally, several policy recommendations are provided. [Display omitted] [ABSTRACT FROM AUTHOR]

The current research assesses the impact of political risk on carbon dioxide (CO 2) emissions in Brazil while controlling the role of financial development, GDP growth, trade openness, and technological innovation. In doing so, the quarterly dataset from 1990 to 2018 is utilized with Bayer and Hanck cointegration, dynamic ordinary least square (DOLS) and canonical correlation regression (CCR), and frequency-domain causality tests. The cointegration test revealed a long-run association amongst the variables of interest. Furthermore, the outcomes from the DOLS and CCR revealed that increasing financial development, technological innovation, trade openness, and real growth increase CO 2 emissions while a better political environment reduces environmental pollution. [Display omitted] • This study aims to examine the effect of political risk on CO 2 emissions in Brazil. • The study used advanced econometric techniques. • A better political environment is helpful to lower CO 2 emissions. • Economic growth and technological innovation increase CO 2 emissions. • Trade openness and financial development also cause to increase in CO 2 emissions. [ABSTRACT FROM AUTHOR]

The United Nations' "Sustainable Development Goals" (SDGs) express attention to climate action. Even though a considerable number of papers have targeted this issue, the literature on the top five, "China, India, Japan, Russia, and the United States" economies is uncommon. Therefore, this paper is targeted to examine the influence of renewable energy (RE), environmental technologies (ETs), and economic policy uncertainty (EPU) on carbon emissions. By using the most recent data available from 1992 to 2020, results are estimated with robust econometric techniques, i. e. "cross-sectionally augmented autoregressive distributed lag (CS-ARDL) and augmented mean group (AMG)". Findings reflect the harmful role of EPU. However, RE and ETs have a supportive role in the transition towards a sustainable environment. The findings are also strong in terms of policy implications for the top five polluters. • Renewable Energy, Economic policy uncertainty, Environment-related technologies, and CO 2 emissions' nexus is empirically investigated. • CSD-test, CADF, CIPS, Westerlund co-integration, AMG, and CS-ARDL estimations are applied. • ERT and RE are found as a supportive for a sustainable environment. • Economic policy uncertainty is deteriorating the environment. [ABSTRACT FROM AUTHOR]

Since climate change mitigation is the central debate of modern literature, the realization of carbon neutrality in response to diversified macroeconomic variables is the most crucial concern of international economies. However, the critical role of trade and renewable electricity output in export diversification-environmental nexus is missing. Therefore, this study investigates the combined influence of trade openness, exports diversification, and renewable electricity output on carbon dioxide emissions (CO 2) in China from 1989 through 2019. Applying novel time series econometric techniques robust to structural breaks, following new outcomes are obtained. Firstly, long-run equilibrium cointegration existed among the under-analysis variables. Secondly, export diversification and renewable electricity output are predicted to decelerate CO 2 , supporting carbon neutrality in the long run. Thirdly, trade openness and gross domestic product accelerated the CO 2 , delaying carbon neutrality accomplishment. Most importantly, significant structural break dummy interacting with trade openness implicated that during the post-2001 era, China's trade openness extensively deteriorated the environmental quality in the face of trade liberalization obtained after joining the World Trade Organization (WTO). Based on empirical results, export diversification and renewable electricity production policies should be mutually non-exclusive and closely coordinated. Further, to counter the carbon emission acceleration impact of trade openness, increasing the share of green tradable products is suggested. Finally, bilateral trade restructuring is recommended to realize the long-term dream of economic sustainability and carbon neutrality. • The role of exports diversification and trade openness is analyzed for China. • Novel time series methods are used for data from 1989 to 2019. • Exports diversification and renewable energy limit carbon emissions. • Trade openness and economic growth cause emissions to increase. • Sustainable trade is encouraged for achieving carbon neutrality target. [ABSTRACT FROM AUTHOR]

During the last few decades, China's transformation from a low-income country to an emerging economy causes carbon emission to rise extensively. Being the largest carbon emitter, China's continuous economic growth may inevitably cause more carbon emissions in the future. To achieve carbon neutrality targets, the country is striving to promote cleaner technologies. However, to finance these environmentally friendly projects, a well-developed financial system is a pre-requisite. This study examines the role of financial development along with output, financial risk index, renewable energy electricity and human capital on carbon emissions. This study uses updated time series data from 1988 to 2018 for China employing novel econometric approaches, i.e., Narayan and Pop unit root test with structural breaks, Maki cointegration and frequency domain causality test for long, short and medium run causality. The empirical outcome shows that improvement in financial development, renewable energy electricity, and human capital index cause to limit carbon emissions. In contrast, gross domestic product, financial risk index and structural break of 2001 increase carbon emissions. Moreover, structural break year of 2008 and financial development index reduces carbon emissions. The negative association between financial development and carbon emissions supports the positive school of thoughts of financial development that promotes a sustainable environment. This study recommends the promotion of quality human capital and green financial development along with increasing the shares of renewable energy in electricity for achieving China 2030 climate targets of reducing pollution. • Role of financial development, renewable energy electricity emissions is examined. • Financial development, human capital and renewable energy limit emissions. • Financial risk index and gross domestic product cause carbon emissions to rise. • The structural break year 2001 causes to surge carbon emissions. • The break year 2008 helped to limit carbon emissions in China. [ABSTRACT FROM AUTHOR]

Since the role of fiscal decentralization cannot be overlooked in tracking sustainable development goals targets of a clean environment and climate mitigation, it is inevitable to understand the comprehensive picture of its link with environmental quality. Unlike past studies, this study investigates the combined influence of energy prices and non-linear fiscal decentralization on carbon emissions in the presence of institutional quality and gross domestic product in the model. It employed advanced econometric panel techniques on data from 1990 to 2018 for the top seven fiscally decentralized Organisation for Economic Co-operation and Development (OECD) nations, including Spain, Belgium, Austria, Switzerland, Germany, Australia, and Canada. The main outcomes are as follows: first, a cointegrating equilibrium link is existent among the study variables. Second, the linear term of fiscal decentralization promotes carbon emissions, while the non-linear term mitigates it. It verified the inverted U-shaped curve between fiscal decentralization and carbon emissions. Third, increasing energy prices for non-renewable energy decrease carbon emission due to a substitution effect. Among other explanatory variables, improvement in the quality of institutions decreases carbon emissions, while the gross domestic product increases it. These findings suggest strengthening fiscal decentralization, lowering non-renewable energy prices, and improving institutional quality to check the deteriorating environmental quality in the study sample and other worldwide regions. • Employed Westerlund cointegration and found long-run equilibrium association. • Applied CS-ARDL and AMG techniques to obtain the influence estimates. • Linear (non-linear) fiscal decentralization promoted (reduced) carbon emissions. • Fiscal decentralization presented an inverted U-shaped association with carbon emissions. • Energy prices and institutional quality mitigated carbon emissions. [ABSTRACT FROM AUTHOR]

Since the Paris Agreement, countries around the globe have been striving to achieve their carbon neutrality targets. However, because China has one of the largest economies in the world, to achieve its targeted carbon neutrality, the roles of foreign direct investment (FDI), technological innovation (TI), and trade are crucial. Therefore, this study aims to introduce the level of trade, renewable energy consumption (REC), and FDI from the years 1995–2017 as new determinants in promoting a sustainable environment in China. The study employs advanced panel methods based on slope homogeneity and a cross-sectional dependence test. The results confirm a cointegration relationship for all models in this study, suggesting that gross domestic product and FDI positively affect carbon emissions. By contrast, foreign trade, REC, and TI are inversely associated with carbon emissions. Moreover, according to Chinese provincial data, the joint term for FDI with REC and TI is negatively associated with carbon emissions. The policy implications of this study suggest that to achieve sustainable FDI, TI should be encouraged to mitigate the pollution caused by FDI. There is a dire need to implement green practices and eco-friendly policies at a national scale. • Foreign direct investment and trade effect on CO2 emission is examined. • It employs robust panel methods suitable for the data. • GDP and foreign direct investment positively affect carbon emissions. • Foreign trade, renewable energy and technology are inversely associated with CO2. • Positive impact of FDI on CO2 is less in provinces with more innovation. [ABSTRACT FROM AUTHOR]