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This study investigates the Environmental Kuznets Curve (EKC) in Asian emerging markets from 1990 to 2020, employing quantile regression and the Driscoll-Kraay Standard Error (DKSE) approach. The findings confirm the EKC, demonstrating an inverted U-shaped relationship between CO2 emissions and economic growth, with emissions expected to decline as long-term economic growth continues. Higher trade openness correlates with higher CO2 emissions. The pollution haven hypothesis is refuted, and the halo effect hypothesis is supported, which implies that foreign investment promotes environmental sustainability through cleaner technologies. Population growth is also positively associated with CO2 emissions. Conversely, renewable energy plays a critical role in reducing emissions and improving energy security. There is also a negative relationship between green growth indicators and CO2 emissions, urging the implementation of policies that mitigate emissions. Considering the roles of innovation, clean technologies, and FDI in accelerating emissions reduction as shown in this study, future research should focus on the impact of technological advancements on environmental sustainability and CO2 emissions.

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New Environmental Kuznets Curve and Renewable Energy: Combating CO2 Emissions in Emerging Market Asian Countries

  • 会议论文

  • 发表日期：

    2026年

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  • Ginanjar Ariya Saputra,
  • Miguel Angel Esquivias,
  • Lilik Sugiharti,
  • Yessi Rahmawati

摘要

This study investigates the Environmental Kuznets Curve (EKC) in Asian emerging markets from 1990 to 2020, employing quantile regression and the Driscoll-Kraay Standard Error (DKSE) approach. The findings confirm the EKC, demonstrating an inverted U-shaped relationship between CO2 emissions and economic growth, with emissions expected to decline as long-term economic growth continues. Higher trade openness correlates with higher CO2 emissions. The pollution haven hypothesis is refuted, and the halo effect hypothesis is supported, which implies that foreign investment promotes environmental sustainability through cleaner technologies. Population growth is also positively associated with CO2 emissions. Conversely, renewable energy plays a critical role in reducing emissions and improving energy security. There is also a negative relationship between green growth indicators and CO2 emissions, urging the implementation of policies that mitigate emissions. Considering the roles of innovation, clean technologies, and FDI in accelerating emissions reduction as shown in this study, future research should focus on the impact of technological advancements on environmental sustainability and CO2 emissions.