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Sustainable Use of Energy Resources, Regulatory Quality, and Foreign Direct Investment in Controlling GHGs Emissions among Selected Asian Economies
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Sustainable Use of Energy Resources, Regulatory Quality, and Foreign Direct Investment in Controlling GHGs Emissions among Selected Asian Economies
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Journal Article
Sustainable Use of Energy Resources, Regulatory Quality, and Foreign Direct Investment in Controlling GHGs Emissions among Selected Asian Economies
2021
Overview
“United in Science” is the recent slogan of the United Nations climate summit in 2020. A collective effort of institutional governance, energy resources utilization, foreign inclusion, and regional collaboration is required for the Sustainable Development Goal (SDGs) of achieving a clean environment. In reaching this objective, this study investigates the sustainably of Regulatory Quality (RQ), Energy Consumption per capita (ECpc), Foreign Direct Investment (FDI), and their interaction in reducing the Greenhouse Gases (GHGs) Emissions. This study considered 27 Asian economies, covering the more extensively undertaken regional investigation, in the time period from 2001 to 2018. The results of the two-step system Generalized Method of Moments (GMM) show that RQ has a strong positive significant impact on GHGs emissions reduction. It further indicates that FDI inflows support the institutions to enhance their institutional capacities. Simultaneously, ECpc has negative impacts on GHGs emissions. Furthermore, RQ interaction with ECpc and FDI also have a strong significant positive impact on GHGs emissions reduction in Asia. The study concludes that the Asia region has been implementing aggressive and prudent policies towards environmental up-gradation to achieve sustainability. However, FDI inflows should be more allocated to environmental quality and energy efficacy to clean the climate and promote regional collaboration.
