How Do Green Investments, Foreign Direct Investment, and Renewable Energy Impact CO2 Emissions? Measuring the Role of Education in E-7 Nations

Abstract

The COP27 conference establishes fresh objectives for global economies to achieve the goals outlined in the Paris Agreement, which are centered on reducing carbon (CO2) emissions and constraining the rise in global temperatures to 1.5 °C. In this background, this study looks at how education has affected CO2 emissions, the economy, the use of renewable energy, green investments, and foreign direct investment in the E-7 countries from 2000 to 2021. Two unit root tests, CADF and CIPS, were used to gauge the data’s stationarity. The long-run coefficients were identified using the momentum quantile regression approach. The empirical results show a cointegration of the variables. Long-term CO2 emissions are influenced by a variety of factors, including foreign direct investment, economic growth, green investments, and education. The outcomes of reliable statistics provide support for the overall empirical study of groups and the economy. The results also suggest that there is a significant increase in education, leading to a reduction in CO2 emissions across long time periods. Additionally, the E-7 countries should place a high priority on boosting the use of renewable energy and investing in the expansion of higher education for sustainable development. To mitigate the rise in carbon dioxide emissions (CO2em), it is recommended that the governments of the E-7 nations take measures to promote the adoption of green investments. Governments must prioritize their efforts to ensure that green financing policies are able to complement environmental welfare policies and green growth policies.