The impact of energy consumption, FDI, and economic growth on CO₂ emissions in Central Asia. Empirical evidence from panel ARDL

Abstract

Utilizing Panel ARDL and a panel Granger causality test, this paper examines the influence of GDP, energy usage, FDI, and trade openness on carbon dioxide (CO2) emissions in three specific Central Asian countries: Kazakhstan, Kyrgyz Republic, and Uzbekistan, from 1997 to 2021. PMG approach findings indicate that energy usage, FDI, and trade have a statistically significant positive impact on CO2 emissions, but GDP has a negative and statistically significant effect on CO2 emissions. In the short-run, only FDI and energy consumption have statistically significant impact on CO2 emissions, negative and positive, respectively. Granger non-causality test also verifies that each variables have a granger cause on CO2 emissions in Central Asian countries.