The Impact of CO2 Emissions and Energy Consumption on Economic Growth: A Panel Data Analysis

This study aims to examine the dynamic connection among economic growth, CO2 emissions, energy consumption, and foreign direct investments (FDIs). The panel section considers period of 2000–2020 for 25 EU Member States excluding Malta Croatia. annual data are retrieved from World Bank Eurostat databases. empirical analysis used estimation procedures such as first- second-generation unit root tests (CIPS) ARDL based on three estimators PMG, MG, DFE. Hausman test indicated that PMG estimator is most efficient. DFE suggested there exist only short-run causalities FDIs GDP growth rate, while MG proved existence both long-run causalities. Three hypotheses positive correlation between regressors rate were in general confirmed. identified may represent recommendations policymakers stimulate renewable sector improve sustainable development.