Sustainable assessment and analysis of energy consumption impact on carbon emission in G7 economies: Mediating role of foreign direct investment

For sustainable assessment and analysis, this research examines the influence of foreign direct investment (FDI), economic development, and resource utilization on carbon emissions in G-7 member countries. This research uses a unique method of moments quantile regression model that accounts for random effects variability as well as microeconomic heterogeneity. Furthermore, several relevant control variables are incorporated into our model to prevent an endogeneity problem. Study findings shows that the influence of exogenous variables on carbon dioxide emissions is diverse among quantiles. Specifically, foreign direct investment has a negative in-fluence on carbon emissions until the 5th quantile, and then becomes substantial at higher quantiles. Carbon emissions rise as a result of increased energy use, with the biggest impacts happening at higher quantiles. Increased financial development and population growth seem to lower emissions in high-emission nations. The study's findings also confirm the accuracy of the halo effect concept in nations with greater emissions. In the G-7 nations, however, there is minimal evidence to justify an inverted U-shaped curve. Furthermore, increased trade openness may decrease environmental emissions, particularly in low-and high-emissions countries. Finally, the study's findings give crucial policy suggestions to policymakers.

Automated summary

This research examines the influence of foreign direct investment, economic development, and resource utilization on carbon emissions in G-7 member countries using a unique quantile regression model. The study finds that the effect of these variables on carbon emissions varies across different quantiles. Increased energy use leads to higher emissions, particularly at higher quantiles. Financial development and population growth appear to reduce emissions in high-emission nations. The study also confirms the halo effect concept and suggests that increased trade openness may decrease environmental emissions in low- and high-emissions countries.