The purpose of this study is to explore the relationship between economic growth,
energy consumption and environmental quality in Vietnam from 1995 to 2018
with the Autoregressive Distributed Lag Cointegration (ARDL) approach. The
results confirm a long-term equilibrium relationship between CO2 (carbon
dioxide) emissions, income, energy consumption, trade openness, and FDI
(Foreign Direct Investment). Among those, income positively affects CO2
emissions, but its long-run elasticity is smaller than the short-run one, implying
that carbon dioxide emissions decrease as income is on the increase over time.
This is similar to the findings of [1] for Cambodia [2] for Turkey, [3] for Jordan,
Kuwait, Qatar, South Asian countries, Latin American countries, and [3]-[4] for
Viet Nam. In addition, there exists statistical evidence of the impact of energy
consumption, trade openness and FDI flows on the level of environmental
pollution in Vietnam. From that, the author proposes a few policy implications in
protecting the environment and promoting economic growth in Vietnam.
Keywords
ARDL, CO2, Economic growth, Energy consumption, Environmental quality