Work

Energy transition investments and carbon emissions: asymmetric and dynamic effects across developed and emerging economies

Year: 2025

Type: article

Abstract: Achieving net-zero emissions is a central global challenge. While Energy Transition Investments (ETIs) are rising, their environmental effectiveness remains uncertain. This study examines the asymmetric impact of ETIs on carbon emissions across 32 major economies (2004–2023) using a Panel Nonlinear ARDL model. Results reveal that positive ETI shocks significantly reduce emissions, while negative shocks increase them less strongly. The Environmental Kuznets Curve is validated and extended to account for green investment flows. Tapio decoupling analysis further shows divergent transition paths between developed and emerging economies. Findings highlight the need for stable, long-term climate finance to sustain global decarbonization.

Source: Finance research letters

DOI: 10.1016/j.frl.2025.107746

Authors: Zakaria Boulanouar, Lobna Essid, Sami Ullah

Institutions: United Arab Emirates University, Tunis University, University of Jendouba, Tunis El Manar University, Arkın Yaratıcı Sanatlar ve Tasarım Üniversitesi

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,730