The influences of economic growth, renewable energy and technological innovations on carbon dioxide emissions in Tanzania: A Dynamic Ordinary Least Square (DOLS) Analysis

This study examines the intricate relationship between economic growth, renewable energy, technological innovations, foreign direct investments (FDI), and CO2 emissions in Tanzania. Using time series data from the World Bank spanning from 1990 to 2023, the study investigates how these factors influence environmental quality. The Augmented Dickey-Fuller (ADF) unit root test confirmed a mixed order of integration among the variables, both at level and first differences. Based on these findings, this paper applied the Dynamic Ordinary Least Squares (DOLS) technique to analyze the impact of economic growth, renewable energy, technological innovations, and FDI on carbon emissions. To ensure the robustness of the findings, further checks were conducted using Fully Modified OLS (FMOLS) and Canonical Cointegration Regression (CCR) methods, which affirmed the DOLS results. The empirical findings indicate that economic growth and renewable energy have a negative effect on carbon dioxide emissions, suggesting an environmental benefit. In contrast, technological innovations and FDI appear to have a detrimental effect on environmental quality in Tanzania. These results highlight the need for the Tanzanian government to strengthen the environmental policies, promote the adoption of green energy technologies, and improve institutional quality to mitigate the adverse effects of economic development on the environment.