Template-Type: ReDIF-Article 1.0
Author-Name: Osabohien, Romanus
Author-Name-First: Romanus
Author-Name-Last: Osabohien
Author-Email: romik247@gmail.com
Author-Workplace-Name: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Kajang, Malaysia; & Department of Economics, Monarch University, Iyesi-Ota, Nigeria; & DEPECOS Institutions and Development Research Centre, Ota, Nigeria,
Author-Name: Akpa, Armand Fréjuis
Author-Name-First: Armand Fréjuis
Author-Name-Last: Akpa
Author-Email: frejuisakpa@gmail.com
Author-Workplace-Name: Institut Supérieur Agronomique et Vétérinaire de Faranah, Faranah, Guinea,
Author-Name: Zogbasse, Symphorien
Author-Name-First: Symphorien
Author-Name-Last: Zogbasse
Author-Email: zsymphorien@yahoo.com
Author-Workplace-Name: Department of Economics, University of Abomey-Calavi, Cotonou, Benin; & Development Finance and Public Policies, University of Namur, Namur, Belgium,
Author-Name: Jaaffar, Amar Hisham
Author-Name-First: Amar Hisham
Author-Name-Last: Jaaffar
Author-Email: AHisham@uniten.edu.my
Author-Workplace-Name: Institute of Energy Policy and Research, Universiti Tenaga Nasional, Kajang, Malaysia,
Author-Name: Al-Faryan, Mamdouh Abdulaziz Saleh
Author-Name-First: Mamdouh Abdulaziz Saleh
Author-Name-Last: Al-Faryan
Author-Email: Al-Faryan@hotmail.com
Author-Workplace-Name: Board Member and Head of the Scientific Committee, The Saudi Economic Association, Riyadh, Saudi Arabia,
Author-Name: Albert, Olalekan Paul
Author-Name-First: Olalekan Paul
Author-Name-Last: Albert
Author-Email: o.albert@unswalumni.com
Author-Workplace-Name: University of New South Wales, Australia,
Author-Name: Orole, Felix
Author-Name-First: Felix
Author-Name-Last: Orole
Author-Email: felix.Orole@acu.edu.au
Author-Workplace-Name: Australian Catholic University, Australia.
Title: Revisiting Renewable Energy and Foreign Direct Investment: Paradoxical Impacts on Ecological Footprint
Abstract: This research analyses the influence of foreign direct investment (FDI) and renewable energy usage on China's ecological footprint from 1990 to 2022, employing the Autoregressive Distributed Lag (ARDL) model. The findings indicate that, in the short-term, a 1% increase in renewable energy consumption raises the ecological footprint by 0.022 global hectares (gha) per capita. However, in the long-term, this increase is more pronounced, augmenting the footprint by 0.033 gha per capita. Moreover, foreign direct investment (FDI) exhibits a significant negative relationship with the ecological footprint in the short-term, indicating that such expenditures facilitate environmental enhancements. Nonetheless, over the long term, foreign direct investment does not exert a statistically significant influence on China's ecological footprint. These findings contest traditional assumptions about the environmental advantages of renewable energy and underscore the necessity for improved regulations that optimise renewable energy practices. The study's findings indicate the necessity of encouraging green foreign direct investment to maintain its immediate environmental advantages. Recommendations include diversifying energy sources, strengthening environmental regulations, and integrating technological innovation in FDI-driven sectors to foster long-term sustainability. The paper concludes with recommendations for further research, including sectoral analysis, comparative studies, and the examination of environmental policies in reducing the ecological footprint.
Keywords: Foreign Direct Investment, Renewable Energy Consumption, Ecological Footprint
Journal: International Journal of Energy Economics and Policy
Pages: 775-787
Volume: 16
Issue: 2
Year: 2026
Month: 01
DOI: 10.32479/ijeep.22274
File-URL: https://econjournals.com/index.php/ijeep/article/download/22274/9817
File-Format: application/pdf
Handle: RePEc:eco:journ2:v:16:y:2026:i:2:id:22274