The impact of energy efficiency on CO2 emissions in Vietnam

Abstract

Pollution is a challenge for humanity in general and for developing countries in particular. Effective use of energy sources is expected to be the solution to reduce the burden on environmental quality. This study aims to assess the impact of economic growth, biomass consumption, and energy efficiency on CO2 emissions in Vietnam during 1971- 2022. Linear autoregressive distributed lag (ARDL) and nonlinear autoregressive distributed lag (NARDL) approaches are applied simultaneously to answer the question of whether the influence of energy efficiency on CO2 emissions in Vietnam is symmetric or asymmetric. The empirical results show that the influence of energy efficiency on CO2 emissions is asymmetrical in the long term. Increasing energy efficiency will reduce CO2 emissions, but negative changes are smaller than positive changes. The new findings enrich the literature, but more importantly, they help policymakers have more empirical evidence for designing energy development policies while exploring the possibility of making energy efficiency requirements mandatory for organizations and residents.