The Role of Investments in Energy in Enhancing Environmental Sustainability in Developing Countries

Abstract

Investment in energy is essential for fostering environmental sustainability by facilitating the shift to greener energy sources. This study seeks to examine the influence of investments in energy on environmental sustainability. The research utilized panel data from 88 developing countries covering the period from 1990 to 2022. The investment in energy through corporate partnerships and public-private partnerships serves as proxies for measuring energy investment. The study's findings revealed a positive correlation between GDP per capita (GDPPC) and carbon emissions; however, the square of GDP per capita (GDPPC²) and health expenditures (HE) exhibited a negative correlation with carbon emissions. The Government should promote investment in renewable energy initiatives to enhance sustainable development in developing nations.