Examining the influence of foreign direct investment, industrialization, and economic variables on CO2 emissions in OECD nations: insights and implications for Vietnam

Abstract

The global challenge of climate change necessitates a comprehensive understanding of the factors driving carbon emissions. In this study, we analyzed data from 33 nations in the Organization for Economic Cooperation and Development (OECD) spanning the period from 2006 to 2020. Our investigation focused on three key factors: Industrialization, Foreign Direct Investment (FDI), and Economic landscape. By quantitatively assessing their impact using Random Effects Model (REM), we found that CO2 emissions were significantly impacted by the Economic Landscape, FDI, and Industrialization, in their order of influence strength. Another key finding is that FDI on industry sector does affect the CO2 emissions while the total FDI show no impact. These findings underscore the critical role of economic policies and practices in shaping environmental outcomes