Analyzing the Impact of Foreign Direct Investment on Renewable Energy Production and Carbon Emissions by Using Panel VECM and VAR Models

Purpose - This research is to investigate analyzes the relationship between foreign investment, renewable energy production, and carbon emissions in the Korean electricity sector Design/Methodology/Approach - This research used a panel vector error correction model, panel vector auto-regression, and ordinary least squares models. Findings - The Results of this research is showing that Foreign investment in the electric power sector has been found to affect the production of renewable energy and carbon emissions in the short term. Research Implications - This study suggests that foreign investment can be a means of promoting the development of the national economy and industry through the influx of capital and advanced new technologies, as well as removing the financial burden from renewable energy and carbon emissions issues at the same time.