A1563
Title: Impact of economic growth, foreign direct investment and use of renewable energy on CO2 emissions
Authors: Mirza Pasic - University of Sarajevo (Bosnia and Herzegovina) [presenting]
Bojan Jovanovski - FH Joanneum - University of Applied Sciences (Austria)
Ahm Shamsuzzoha - University of Vaasa (Finland)
Abstract: The aim is to analyze the impact of economic development, foreign direct investment and the use of renewable energy on CO2 emissions. Economic growth has been closely linked to increased energy consumption, especially from fossil fuels. As industrial activities expand, GDP grows, which often leads to increased energy use and usually higher CO2 emissions. However, with advancements in technology and shifts towards cleaner and more energy-efficient practices, the correlation between GDP growth and CO2 emissions can be lowered to some extent. Foreign direct investment (FDI) refers to investments made by foreign entities into the economy of a host country. An increase in FDI can stimulate economic development, leading to increased industrial activities and impact on CO2 emissions. The extent of this impact depends on the nature of the investment. If FDI is directed at using environmentally friendly technologies, it can actually contribute to reducing CO2 emissions. Otherwise, it can increase CO2 emissions. Using renewable energy sources offers an opportunity to decouple economic growth from CO2 emissions. As the use of renewable energy, as environmentally favorable alternatives, is increased and the use of fossil fuels energy sources is decreased, the carbon footprint can be reduced. Achieving sustainable economic development requires a joint effort to balance economic growth with environmental protection and a shift towards cleaner and more sustainable energy sources.
