Foreign Direct Investment Settlement, Novel Energy Methods and CO2 Emissions: Evidence from United Arab Emirates

Umar Nawaz Kayani*, Ahmet Faruk Aysan, Umer Iqbal, Muhammad Arif, Ijaz Ur Rehman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

This paper explores the relationship between foreign direct investment (FDI) settlement, the contribution of clean energy and CO2 emission in United Arab Emirates (UAE). Using the time-series estimation methods, this study opts cointegration test to find the long-run association between FDI and CO2 . Furthermore, energy source of UAE is based on fossil fuel, we employed fixed-effect regression model to determine the effect of FDI after controlling several other factors that causes CO2 emission to find the magnitude. After obtaining the data from 1971 to 2019, we find that FDI plays a significant role in CO2 emission in the economy. Another key contribution of this paper is regarding clean energy. The results confirm that clean energy helps to reduce the CO2 emissions. The findings of this research endorses the initiative of the UAE launched “Energy Strategy 2050.” This implies that UAE is moving in a right direction to curb the CO2 emission by increasing the contribution of clean energy in the total energy mix and would achieve this target through an effective implementation of the “Energy Strategy 2050.”.

Original languageEnglish
Pages (from-to)364-369
Number of pages6
JournalInternational Journal of Energy Economics and Policy
Volume12
Issue number6
DOIs
Publication statusPublished - 28 Nov 2022
Externally publishedYes

Keywords

  • Carbon Emission
  • Clean Energy
  • Foreign Direct Investment

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