The Significance of FDI Inflow and Renewable Energy Consumption in Mitigating Environmental Degradation in Somalia

This study explores the impact of foreign direct investment (FDI), renewable energy, gross capital formation, population growth, domestic product (GDP), and square GDP on carbon dioxide (CO2) emissions in Somalia between 1990 2019. To investigate short- long-run elasticity environmental degradation other variables, autoregressive distributed lag (ARDL) model is employed. In Somalia, coefficients ARDL indicate that energy contributes negatively to degradation. At same time, growth undermine quality environment. Furthermore, FMOLS results validate existence EKC Somalia. The Granger causality test also applied causal relationship variables. Despite this, there was no evidence FDI are causally related Based our empirical assessment, Somali government should encourage investment, especially technology-intensive environmentally friendly industries, pay increased attention improvement consumption sources.