Open AccessThe effectiveness of Vietnamese policies response to climate change through ARDL analysis
Author(s) -
Le Hoang Nghiem,
Dang Bac Hai,
Tran Thi Diem Nga,
Su Thi Oanh Hoa
Publication year - 2021
Publication title -
ho chi minh city open university journal of science- economics and business administration
Language(s) - English
Resource type - Journals
ISSN - 2734-9586
DOI - 10.46223/hcmcoujs.econ.en.11.2.1435.2021
Subject(s) - distributed lag , foreign direct investment , economics , energy consumption , renewable energy , consumption (sociology) , natural resource economics , climate change mitigation , climate change , greenhouse gas , investment (military) , gross domestic product , international economics , macroeconomics , econometrics , engineering , ecology , social science , sociology , biology , politics , political science , law , electrical engineering
Being a highly vulnerable country due to climate change, Vietnam has issued various climate policies while trying to keep the pace of economic growth. The study evaluates the effectiveness of these policies by examining the effect of economic and energy factors in the efforts of controlling CO2 emissions. Approach by Autoregressive Distributed Lag (ARDL) analysis, the model of a linear regression between CO2 emissions and Gross Domestic Product (GDP), Foreign Direct Investment (FDI) & sources of energy consumption has been developed from 1985 to 2018. The study indicates that the economic factor as Foreign Direct Investment (FDI) is a possible significant element to mitigate the emission. In addition, sources of energy consumption have the important role of controlling CO2 emissions. In the long run, the consumption of non - renewable energy is a positive and significant effect on CO2 emissions while renewable energy is vice versa. These outcomes show the Foreign Direct Investment (FDI) and renewable energy consumption factors lead to the decrease of CO2 emissions in the long run for Vietnam, which implies the co-exist of economic growth and decarbonization.