How do FDI inflows curvilinearly affect carbon emissions? Threshold effects of energy service availability and cleanliness

Abstract

To examine the relationship between foreign direct investment (FDI) inflows and carbon emissions from the perspective of the threshold effects of energy service availability and energy consumption cleanliness, this study employs the panel data of 16 Regional Comprehensive Economic Partnership member countries for the period 1990-2019. Using panel threshold models, this study finds that energy service availability and energy consumption cleanliness are two significant threshold variables in the process by which FDI inflows affect carbon emissions. Before they reach a certain