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Quantile Effect of Economic Factors and Energy Consumption on Environmental Degradation in Vietnam

Hoang Thi Xuan

https://orcid.org/0009-0003-9463-1689

University of Economics and Law, Ho Chi Minh city, Vietnam

Vietnam National University, Ho Chi Minh City, Vietnam

No. 669, Highway 1, Quarter 3, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Vietnam National University, Linh Trung Ward, Thu Duc City, Ho Chi Minh City 70000, Vietnam

E-mail Address: xuanht23702@sdh.uel.edu.vn

Corresponding author.

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Nguyen Chi Hai

https://orcid.org/0000-0001-9694-445X

University of Economics and Law, Ho Chi Minh city, Vietnam

Vietnam National University, Ho Chi Minh City, Vietnam

No. 669, Highway 1, Quarter 3, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Vietnam National University, Linh Trung Ward, Thu Duc City, Ho Chi Minh City 70000, Vietnam

E-mail Address: hainc@uel.edu.vn

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, and

Ngo Thai Hung

https://orcid.org/0000-0002-6976-1583

University of Finance-Marketing, Vietnam

No. 778, Nguyen Kiem St., Phu Nhuan District, HCMC 700000, Vietnam

E-mail Address: hung.nt@ufm.edu.vn

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https://doi.org/10.1142/S1464333224400015Cited by:0 (Source: Crossref)

Abstract

This study aims to highlight the asymmetric impact of economic growth (GDP), trade openness (TO), energy consumption (EC), foreign direct investment (FDI), and financial development (FD) on carbon dioxide (CO₂) emissions in Vietnam over the period 1990–2022, using quantile-on-quantile regression and Granger causality in quantiles techniques. Our mainstream findings indicate that the selected macroeconomic indicators have a strong positive effect on CO₂ emissions in this country, and this effect is more pronounced in the lowest and highest quantiles of the respective variables. In addition, the results of Granger causality suggest a bidirectional causal relationship between the examined indicators. These findings suggest that fostering economic growth, promoting trade openness, managing energy consumption, encouraging foreign direct investment, and enhancing financial development can contribute to a sustainable environment in Vietnam.

Keywords:

JEL: C14, F64, F60

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