The Impact of Economic Factors on CO2 Emissions: The Moderating Effect of Renewable Energy

Abstract

This study examines the economic factors that influence carbon emissions in Vietnam and the moderating role of renewable energy use from 2010 to 2024 using mixed-effects maximum likelihood regressions. The results indicate that economic growth can lead to increased CO₂ emissions, whereas renewable energy significantly reduces CO₂ emissions in ASEAN countries. The moderating effect of renewable energy lessens the impact of economic growth on CO₂ emissions. Additionally, the moderating role of renewable energy also plays a key part in lowering emissions when considering the effects of foreign direct investment. This study is valuable for future research on emissions in countries, focusing on how economic factors influence CO₂ emissions and the moderating role of renewable energy.