THE RELATIONSHIP BETWEEN GREEN ECONOMY DEVELOPMENT AND GDP PER CAPITA IN VIETNAM FROM THE PERIOD OF 1990 – 2024

Abstract

This research primarily focuses on analyzing the relationship between green economy development and GDP per capita in Vietnam from 1990 - 2024, while also examining the emergence of the Environmental Kuznets Curve (EKC). Data on CO2 emissions and incomes were obtained from the World Bank and IFS; a nonlinear quadratic regression model was estimated using Eviews. The results of the findings indicate that LGDPP initiates a negative impact while LGDPP^2 establishes a positive impact on CO2 emission, both with high statistical significance. This confirms the presence of an inverted U-shaped curve: emission increases as the income rises in the initial stage, yet the rate of increase later gradually decelerates at a higher income rate. However, Vietnam has yet to reach the turning point of the EKC, suggesting a continuous involvement of the country’s economic growth in the increasing rate of carbon emissions. By providing additional long-term empirical evidence for Vietnam, this research proposes the promotion of renewable energy, technological innovations, and green consumption. Furthermore, emphasizes the carbon policy framework optimization to support the transition toward a sustainable growth model.