The role of foreign direct investments, urbanization, productivity, and energy consumption in Finland's carbon emissions: an ARDL approach

Environ Sci Pollut Res Int. 2023 Aug;30(37):87685-87694. doi: 10.1007/s11356-023-28680-w. Epub 2023 Jul 10.


This study investigates the effects of productivity, energy consumption, foreign direct investments, and urbanization on carbon dioxide emissions (CO2) in Finland during 2000-2020 using an autoregressive distributed lag (ARDL) model. The results show that (i) there is evidence of cointegration among variables; (ii) energy consumption has a positive effect on CO2 emissions in the long run; (iii) labor productivity and urbanization have a negative effect on CO2 emissions in the long run; (iv) foreign direct investments are not a significant explainer of CO2 emissions. The results are discussed with some policy implications and suggested future research.

Keywords: ARDL estimation; Bounds test; Carbon dioxide emissions; Foreign direct investments; Productivity.

MeSH terms

  • Carbon Dioxide / analysis
  • Economic Development*
  • Finland
  • Investments
  • Urbanization*


  • Carbon Dioxide