Carbon emissions determinants and forecasting: Evidence from G6 countries

Duc Khuong Nguyen, Toan Luu Duc Huynh, Muhammad Ali Nasir

Research output: Contribution to journalArticlepeer-review

152 Citations (Scopus)


We examine the explanatory and forecasting power of economic growth, financial development, trade openness and FDI for CO 2 emissions in major developed economies within the context of the debate on curbing CO 2 emissions Post-Paris Agreement (COP21). Using data from G-6 countries from 1978 to 2014 and employing a set of empirical approaches, we find weak evidence of the Environmental Kuznets Curve, while economic growth, capital market expansion, and trade openness are found to be major drivers of carbon emissions. Carbon emissions are also weakly and negatively affected by stock market capitalization and FDI. Moreover, the forecasting performance is quite good, particularly by augmenting the model with energy consumption and oil prices. With respect to climate commitments, our empirical findings reveal important policy implications.

Original languageEnglish
Article number111988
Number of pages10
JournalJournal of Environmental Management
Early online date6 Feb 2021
Publication statusPublished - 1 May 2021


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