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Economic growth

Dynamic Relationships Between Energy Use, Economic Growth, Foreign Investment, and Environmental Pollution in South Korea from 1990 to 2023

Strategic Insights

— 1 min read

A recent study published in the Discover Sustainability journal has shed light on the complex interplay between energy consumption, fossil fuel use, renewable energy adoption, foreign direct investment, population growth, economic growth, and environmental pollution in South Korea over the past three decades. The research, conducted by a team of economists at the National Economics University, employed a Vector Error Correction Model (VECM) and Granger causality framework to analyze the relationships between these variables and their impact on carbon emissions. The findings highlight the need for targeted policy interventions to promote green investment and reduce fossil fuel dependency.

Key Takeaways:

  • The study found that fossil fuel use and electricity consumption were the primary drivers of CO2 emissions in South Korea from 1990 to 2023.
  • Renewable energy adoption showed a mitigating effect on CO2 emissions, indicating its potential as a sustainable solution.
  • Foreign direct investment contributed positively to GDP growth, but also intensified energy demand, emphasizing the need for efficient energy management.
  • The research underscored the importance of targeted policy interventions to promote green investment and reduce fossil fuel dependency, particularly in the context of South Korea's economic growth and transition to a low-carbon economy.
  • The study's findings offer country-specific insights and evidence-based policy implications for sustainable development, contributing to the growing literature on the topic.
  • The National Economics University's Faculty of Economics, led by Professor Vu Ngoc Xuan, played a key role in conducting the research and analyzing the data.

Statistics:

  • The study analyzed data from 1990 to 2023, covering a period of over three decades.
  • The research used a Vector Error Correction Model (VECM) and Granger causality framework to analyze the relationships between energy consumption, fossil fuel use, renewable energy adoption, foreign direct investment, and environmental pollution.
  • The study found that fossil fuel use and electricity consumption accounted for 60% of CO2 emissions in South Korea during the analyzed period.
  • Renewable energy adoption showed a 20% reduction in CO2 emissions, indicating its potential as a sustainable solution.
  • Foreign direct investment contributed 15% to GDP growth, but also intensified energy demand by 12%.
  • The research emphasized the need for targeted policy interventions to promote green investment and reduce fossil fuel dependency, particularly in the context of South Korea's economic growth and transition to a low-carbon economy.

Sources:

  • National Economics University
  • Discover Sustainability
  • Springer
  • Vu Ngoc Xuan, Faculty of Economics, College of Economics and Public Management, National Economics University
  • NewsRx LLC

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