Open AccessFactors Affecting C02 Emission in Vietnam: a Panel Data Analysis
Author(s) -
Le Trung Thanh,
Nguyen Duc Khuong
Publication year - 2017
Publication title -
organizations and markets in emerging economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.195
H-Index - 4
eISSN - 2345-0037
pISSN - 2029-4581
DOI - 10.15388/omee.2019.8.2.01
Subject(s) - pollution haven hypothesis , kuznets curve , openness to experience , foreign direct investment , distributed lag , economics , panel data , vietnamese , haven , energy consumption , investment (military) , international economics , econometrics , macroeconomics , political science , psychology , social psychology , ecology , linguistics , philosophy , mathematics , combinatorics , biology , politics , law
The purpose of this study is to investigate the major factors in the process of economic growth that influence the carbon dioxide (CO2) emission in Vietnam. An Autoregressive Distributed Lag (ARDL) model was used to evaluate the impact based on Environmental Kuznets curve (EKC) and Pollution haven hypothesis (PHH) in 1990–2011. The results indicate that the economic growth, energy consumption, financial development and trade openness positively influence the CO2 emissions, whereas foreign direct investment has a negative impact in the short term. Coefficient of joining ASEAN is not statistically significant. The findings of this study also support the validity of EKC and PHH in the Vietnamese economy. Therefore, it is important to use green energy, examine requirements for foreign investment and adopt trade-related measures and policies to increase environmental protection.