Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Abstract

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

“Su”ya Fi̇nansal Ve Makroekonomi̇k Bi̇r Bakiş: Fi̇li̇sti̇n Örneği̇

“…Despite it is statistically insignificant the negative relationship found in this study is similar to those of Haseeb et al (2020) for India. The cointegration test findings are also similar to those of Grabara et al (2021) considering the significant cointegration finding for the spring water. However, since access of Palestinian territories to water is limited and under control the research subject and findings need special attention and prevent us making clear comments.…”

“…They also conclude that increasing scales of economic activities resulted from the production process demand more natural resources, such as soil, land, water and energy. Grabara et al (2021), investigated the relationship between renewable energy consumption, economic growth and foreign direct investment for the period of 1992 and 2018 in Kazakhstan and Uzbekistan by the Granger causality test and Johansen cointegration test. It is reported that that among all investments aimed at protecting the environment in the total investment, the share for the protection and rehabilitation of soil, underground, and surface water is 8,9%.…”

Technowomen: Women’s Autonomy and Its Impact on Environmental Quality

“…The earlier literature is less likely to fill this gap and remains inside to get few inferences from women's autonomy and energy efficiency without moderating technological factors with women's empowerment across countries [47,48]. Finally, the trade openness factor is included in the green growth agenda to evaluate the pollution haven hypothesis in Technowomen-centric development, while earlier studies confined it with some other economic factors [49][50][51].…”

“Green Energy” and the Standard of Living of the EU Residents

“…Based on the constructed models for panel data, the authors indicated that GDP per capita had a positive, but very low impact on the share of RES in electricity in the years 2007-2017 in EU countries, except for Luxembourg. On the other hand, based on data from 1992-2018, J. Grabara et al [56] analysed the relationships between economic growth and the use of renewable energy consumption and direct foreign investments in Kazakhstan and Uzbekistan. Based on the results of the Granger causality test it was, among other things, demonstrated that there is a relationship between direct foreign investments and the use of renewable energy in the countries under consideration.…”