The impact of renewable energy use on CO₂ emissions reduction: Empirical evidence from Asian countries

Abstract

This study evaluates the impact of renewable energy consumption on CO₂ emissions in 47 Asian countries during the period 2007- 2021, while also analyzing the roles of economic growth, foreign direct investment (FDI), and urbanization in influencing CO₂ emissions. Using the Random Effects Model (REM), the results indicate that renewable energy consumption significantly reduces CO₂ emissions, whereas GDP growth, FDI, and the urban population rate all contribute to increasing emissions. These findings imply that, in addition to promoting clean energy, Asian countries should focus on improving the quality of FDI, implementing rational urban planning, and guiding economic growth toward sustainability. Based on these results, the study offers several policy recommendations for the region and for Vietnam in particular, such as formulating climate change response strategies, promoting sustainable agriculture, and more, with the aim of balancing economic development and environmental protection in the context of climate change