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<p>The escalating impacts of climate change and environmental degradation present a critical challenge for developing economies striving to balance economic advancement with ecological sustainability. Despite global efforts, carbon emissions remain persistently high, particularly in regions where institutional quality and technological readiness vary. Costa Rica, often hailed as a sustainability frontrunner in the Global South, provides a compelling case to examine how economic integration, renewable energy adoption, governance, and innovation collectively shape environmental outcomes. This study investigates the dynamic and heterogeneous effects of technological advancement, globalization, foreign direct investment, renewable energy consumption, rule of law, and corruption on carbon emissions in Costa Rica over the period 1990Q1 to 2023Q4. Using Wavelet Quantile Regression (WQR) and Wavelet Quantile-on-Quantile Granger Causality (WQQGC) techniques, the analysis reveals mixed outcomes: technological innovation and renewable energy reduce emissions over the long term, while FDI and globalization exert positive pressure on emissions at lower and upper quantiles. The rule of law shows a strong short-term mitigating effect, and corruption control demonstrates a weak but generally beneficial influence. These findings underscore the importance of tailored, quantile-specific policy strategies. The study contributes novel methodological and empirical insights, offering robust, policy-relevant guidance for countries seeking to align sustainable development goals with climate action.</p>

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Do technological advancements, globalization, and corruption impact environmental sustainability in Costa Rica? A wavelet quantile-based analysis

  • 期刊论文

  • 发表日期：

    2025年10月23日

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  • Siwei Han,
  • Babatunde Sunday Eweade,
  • Berna Uzun,
  • Victoria Olushola Olanrewaju

摘要

The escalating impacts of climate change and environmental degradation present a critical challenge for developing economies striving to balance economic advancement with ecological sustainability. Despite global efforts, carbon emissions remain persistently high, particularly in regions where institutional quality and technological readiness vary. Costa Rica, often hailed as a sustainability frontrunner in the Global South, provides a compelling case to examine how economic integration, renewable energy adoption, governance, and innovation collectively shape environmental outcomes. This study investigates the dynamic and heterogeneous effects of technological advancement, globalization, foreign direct investment, renewable energy consumption, rule of law, and corruption on carbon emissions in Costa Rica over the period 1990Q1 to 2023Q4. Using Wavelet Quantile Regression (WQR) and Wavelet Quantile-on-Quantile Granger Causality (WQQGC) techniques, the analysis reveals mixed outcomes: technological innovation and renewable energy reduce emissions over the long term, while FDI and globalization exert positive pressure on emissions at lower and upper quantiles. The rule of law shows a strong short-term mitigating effect, and corruption control demonstrates a weak but generally beneficial influence. These findings underscore the importance of tailored, quantile-specific policy strategies. The study contributes novel methodological and empirical insights, offering robust, policy-relevant guidance for countries seeking to align sustainable development goals with climate action.