Renewable Energy Consumption, Foreign Direct Investment, and the Environmental Kuznets Curve of the Philippines

Date

6-2022

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dr. Asa Jose U. Sajise

Committee Member

Veronica I. Castillo, Maria Angeles O. Catelo, Agham C. Cuevas

Restrictions

Restricted: Not available to the general public and to those bound by the confidentiality agreement. Access is available only after consultation with author/thesis adviser.

Abstract

Climate change, environmental deterioration, and its relationship with economic growth have led to interest in the existence of the Environmental Kuznets Curve (EKC). The EKC is an inverted U relationship between environment degradation and economic growth. This study aims to contribute to the growing EKC literature by examining the relationship between CO2 emissions and economic growth in the Philippines. The contribution of the study is its inclusion of other confounding variables, in particular Foreign Direct Investments (FDI), fossil fuel consumption, renewable energy consumption, trade openness, and population that may affect the CO2 - growth relationship. The relationship was analyzed using a multivariate regression and the Autoregressive Distributed Model (ARDL). A combination of I(10) and I(1) models were conducted to determine the appropriate function of the EKC model. The results of different model specification showed varied results in the majority showing a long-run relationship between fossil fuel and CO2 emissions and non-existence of the EKC in the country. The presence of high multicollinearity prevented further analysis. Precision of the results to determine the existence of EKC in the country and confirm the pollution haven hypothesis was also hampered by the presence of a high level of multicollinearity. Extensive model specification testing pointed to the need to increase the sample size as the only remedy for this problem.

Language

English

LC Subject

Renewable energy sources--Environmental aspects, Energy Consumption-- Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 E2 M33

Document Type

Thesis

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