Nexus between CO2 emission, renewable energy, trade openness and foreign direct investment, and output volatility

In the pursuit of sustainable economic development, this study investigates the nexus between carbon emissions, renewable energy utilization, trade openness, foreign direct investment and output volatility across selected East Asia–Pacific nations. Employing advanced ARDL bound tests, our results reveal a robust long-term relationship among these selected variables. Notably, our findings underscore the significant impact of carbon emissions on output volatility across all examined nations, except for Malaysia. Moreover, the study highlights the positive impact of renewable energy on output volatility, signaling a compelling imperative for policymakers to prioritize initiatives aimed at curbing carbon emissions and fostering the widespread adoption of renewable energy sources.