Dynamic effects of foreign direct investment, globalization, economic growth, and energy consumption on carbon emissions in Mexico: An ARDL approach
A. Raihana, Mohammad Ridwanb, Grzegorz Zimonc, Junaid Rahmand, Tipon Tanchangyad, Abm Mainul Barie, Filiz Guneysu Atasoyf, Anwarul Islam Chowdhuryg, Runa Akterh✉
- aApplied Research Center for Environment and Marine Studies, King Fahd University of Petroleum and Minerals, Dhahran, 31261, Saudi Arabia
- bDepartment of Economics, Noakhali Science and Technology University, Noakhali, 3814, Bangladesh
- cDepartment of Finance, Banking and Accountancy, Faculty of Management, Rzeszow University of Technology, Rzeszow, Poland
- dDepartment of Finance, University of Chittagong, Chittagong, 4331, Bangladesh
- eDepartment of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka, 1000, Bangladesh
- fWilson Science Center, Information and Data Science, University of the Ozarks, Clarksville, AR, 72830, United States
- gSchool of Forest Sciences, University of Eastern Finland, Joensuu, FI-80101, Finland
- hSchool of Environment and Sustainability, University of Saskatchewan, Saskatoon, SK, S7N 5E8, Canada
- ✉Corresponding author
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Abstract
Due to the global threat of climate change , investigating the interplay between environmental factors and environmental quality is crucial for effective policy implementation to achieve environmental sustainability . This study examines the influence of economic growth, energy utilization, foreign direct investment (FDI), and globalization on carbon dioxide (CO 2 ) emissions in Mexico from 1970 to 2022. By adopting the Autoregressive Distributed Lag (ARDL) method, it has been observed that a 1% boost in GDP and energy use contributes to a 1.05% and 1.41% surge in Mexico's carbon emissions in the long run, while 1.81% and 1.85% increase in the near term. Instead, a 1% rise in FDI and globalization have a favorable implication on Mexico's ecosystem level by reducing 0.5% and 0.03% carbon emissions in the long run while 0.28% and 0.01% fall in the near term. The results would help policymakers put the right policies into place to achieve the Sustainable Development Goals (SDGs) through the development of renewable energy, environmental investments , a low-carbon economy, and international cooperation for the transfer of green technologies.