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Dynamic relationships between energy use economic growth foreign investment and environmental pollution in South Korea from 1990 to 2023

Year: 2025

Type: article

Abstract: This study investigates the dynamic interplay between energy consumption (ECO), fossil fuel (FFU) use, renewable energy (RE), foreign direct investment (FDI), population growth (PG), economic growth (EG), and environmental pollution in South Korea from 1990 to 2023. Using a Vector Error Correction Model (VECM) model and Granger causality framework, the analysis identifies FFU use and electricity consumption as key drivers of CO₂ emissions. At the same time, RE adoption shows a mitigating effect. FDI contributes positively to GDP growth but also intensifies energy demand. The findings underscore the need for targeted policy interventions to promote green investment and reduce fossil dependency. This research contributes to the growing literature on sustainable development by offering country-specific insights and evidence-based policy implications.

Source: Discover Sustainability

DOI: 10.1007/s43621-025-01735-3

Author: Vu Ngoc Xuan

Institution: National Economics University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Affordable and clean energy, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,390