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

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.