Revisiting the impact of energy consumption, foreign direct investment, and geopolitical risk on CO2 emissions: Comparing developed and developing countries
Аннотация
A growing body of literature probes the impact of geopolitical risk (GPR) on CO 2 emissions. However, no study compares the findings in the case of developed and developing countries. Hence, this study aims to probe the impact of GPR on CO 2 emissions for selected developed and developing countries while controlling for energy consumption, foreign direct investment, and economic growth. For this purpose, we make use of a panel dataset covering the period 1990–2020. In the long-run, we report that the Environmental Kuznets Curve hypothesis exists for developing countries. Next, the pollution haven hypothesis is validated for the developed countries in the long-run. Also, GPR escalates emissions for developed and developing countries in the long-run. In the short-run, the Environmental Kuznets Curve and pollution haven hypothesis are found invalid. Moreover, in the short-run, GPR impedes emissions in both developed and developing countries. Further, energy consumption upsurges emissions across all samples (i.e., either developed or developing countries) in either its short- or long-run. The heterogeneous findings across the long- and short-run, for developed and developing countries, propose to formulate unalike policies for countries with different levels of income.