Impact factors to reduce carbon emissions. Evidences from Latin America

Abstract

PurposeCarbon dioxide emissions affect the environment, presenting major implications for sustainable development and consequently model climate change policies. The main aim of the paper is to highlight the factors leading to CO2 emissions in Latin America.Design/methodology/approachThe analysis was performed using data for 1990–2020 and panel regression and STATA software.FindingsThe results highlighted that the variables have significantly influence CO2 emissions in case of the countries in the sample.Originality/valueThe novelty of the paper consists in using all financial inflows of together (foreign direct investment, official development assistance and remittences), Latin America heavily in-flowed with remittances from the USA. Since Latin America is enriched with forest areas, the authors also covered this variable in the estimations. Urbanization and transportation are induced by remittance inflows, thus wellbeing was incorporated in the model. The conclusion of the study demonstrates the need for complex measures involving public-private partnerships, public awareness of the need for energy transition and the involvement of foreign-owned companies that must not only pursue their own interests but also generate positive economic, environmental, and social externalities in host countries.