It is eminent that lethal gasses are mandatory to hold the temperature of the earth at some certain level to maintain life. However, huge amounts of such gasses due to man-made operations e.g., extensive use of fossil fuels and other greenhouse gasses bring scorching temperatures and global warming which change the global warming system. Some empirical studies in early 1990s independently examined the connection between per capita income and ecological degradation (Panayotou 1993). Their findings further asserted that ecological degradation and per capita income unveiled an upturned U-shaped curve, identified as Ecological Kuznets Curve (EKC). The EG has a direct link with CO2 emission (CE) in the long orientation (Grossman and Krueger 1995; Mikayilov, et al., 2018). Over the previous eras, researchers of environment and economics had been examined with the focus to rocketing EG and mitigate on social dilapidation, as a concern lethal gasses from economic growth. This peculiarity has observed numerous empirical studies assumed primarily to scrutinize the causative link between EG and CE, and to examine the hypothesis for EKC, and thus create appliances of achieving green growth and sustainable economic progression. The EG does not influence by CE for non-OECD allies, but they acquired statistical outcomes that economic development indicates an increment in CE (Dinda, 2009; Odhiambo, 2016). Moreover, there is no significant causal connection between CE and EG and thereby confirmed the impartiality of the hypothesis (Richmond and Kaufmann, 2006).
The FDI dynamic encourages economic development. However, it affects the atmosphere in host economies. Huang, et al., (2022) expressed that cross-border inflow tends to raise the CO2 emissions (CE) which exhibits a straight link between FDI and CE. But economic development and regulatory quality avert this positive link into negative. We observed a growing literature on linking FDI and CE while reviewing prior literature. However, this link has got eminent rank in the discussions of scholars for the last few decades. Numerous research has inspected the straight impacts of FDI invasions on CO2 releasing and proposed pollution haven hypothesis, which advocates that invasion of cross border investment led to greater CE. Mostly, the advanced regions prefer to choose developing regions for investment portfolios due to minimum stringent regulations which invite higher CE (Mahadevan and Sun, 2020; Aller, et al., 2021). The amount CE increases due to the enlargement of FDI-led economic operations (Grimes and Kentor, 2003). Grimes and Kentor, (2003) proposed that cross-border invasions significantly upturn CE in less developed regions. Cole, et al., (2006) asserted that high corruption perceptions index countries enhance their CE due to lax ecological strategies.
Tourism is the utmost and mounting industry in the world. The swift advancement of the tourism industry and increasing tourism (TR) mobility has backed significantly to both developed and developing regions. Eyuboglu and Uzar, (2020) asserted that tourism, economic advancement, and energy ingesting affect emissions of CO2 positively both in short and long orientation. Chen, et al., (2018) established the contact amongst, CE and economic advancement in China. They highlighted that tourism advancement is positively affects CE and specifically the transportation zone is the fundamental cause of CE. Raza, et al., (2017) confirmed the associations of TR with CE in the US during 1997– 2016. The findings’ declared TR is a determinant of CE. He, et al., (2019) found that the tourism industry's consumptions are lesser than other industries. Dogan, et al., (2015) exhibited that tourism shrinks ecological quality by increasing emissions of CO2. The outcomes regarding causality strategy represented the occurrence of a unidirectional causative liaison from TR to CE. Moreover, Shakouri, et al., (2017) confirmed the links among economic advancement, TR, and CE during 1996–2014 in certain Asia-Pacific economies. They pinpointed that tripper invasions directly lead CE in the long orientation. Azam, et al., (2018) investigated the link between TR and CE, specified that tourism positively leads to CO2 emission. Akadiri, et al., (2018) evaluated the link among TR, economic advancement, and CE during 1995–2014. Their findings suggested that tourism key determinant of CE. Shi, et al., (2019) evaluated the interconnection between tripper invasions, TR expenses, and CE throughout 1995–2015. The outcomes indicated that tourism overheads enlarge CE in below-average income economies, while tourism invasions have a direct effect on CE both in under and above-average income economies.
Non-renewable energy (NRE) somehow increases CO2 emissions (CE). Various scholars noticed a direct association of NRE with CO2 emissions which reveals that high consumption of NRE leads to CO2 emissions (Awodumi and Adewuyi, 2020). Moreover, Jalil and Feridun, (2011) explored the long-oriented impact of advancement in the financial sector and energy consumption on ecological degradation in China throughout 1954–2007. Their outcomes exposed that aggregate energy consumption has a direct effect on ecological pollution. Acaravci and Ozturk, (2010) Jayanthakumaran, et al., (2012), Ozturk and Acaravci, (2013) also recommended a positive link between NRE and CE for India, China, Europe, Indonesia, and Turkey respectively. Bélaïd and Youssef, (2017) and (Alola, et al., 2019) established that energy consumption is positively associated with ecological pollution. Shahbaz, et al., (2013) have declared that trade openness and financial development have a positive link with CO2 emissions. However, Jalil and Feridun, (2011) disclosed a significant positive contribution to mitigating ecological pollution, but they at the same time stated the positive impact of trade openness with CE. Though, this result is consistent with (Acaravci and Ozturk, 2010; Jayanthakumaran, et al., 2012; Ozturk and Acaravci, 2013).
More than 50 percent population of the entire world lives in urban areas and by 2030, this ratio will reach 60 percent. In some specific states, 70 percent in Europe is forecasted to be surpassed 80 percent by 2050. This demographic upsurge in urban areas leads to 80 percent of energy being consumed in them. The greater population density augments individual energy consumption (Jorgenson and Clark, 2010; Periñán, et al., 2021). In brief, an increase in population density enlarges CO2 emissions (CE). A mounting of scientific research regarding climate fluctuations causes and consequences has assured instantaneous and continuous reductions in CO2 emissions (CE) (Lamb, et al., 2014). The interstate quorum on climate disparity (IPCC, 2015) 5th valuation report discloses that CO2 emissions have the main causative of total lethal gas secretion. Growth in population density (PD) for future few years could affect consumption of energy and emissions of CO2, (Hossain, 2011; Liddle, 2015) which unveils that PD has a direct liaison with CE. India has achieved 2nd most populated country in the world and the world’s 3rd leading CO2 emitter with a portion of 5.98 percent to aggregate global emissions in 2010 except the U.S. and China (WDI, 2015). The emissions of lethal gasses increase with an increment in population which exhibits a positive association between PD and CE (Babu & Kaechele, 2015).
Among others, the development and advancement through contemporary approaches in the financial sector led to economic growth (EG). Moreover, financial development (FD) stimulates economic growth (Charfeddinea & Kahia, 2019). Their study also recommended a straight link between FD and CO2 emissions (CE). Presently, FD considers indispensable support for EG because it offers an assortment of funds through savings and enlightens the obligatory information regarding investment operations. The FD plays a mandatory role in observing CE by bringing technological advancement in the energy supply sector for mitigating the degree of CE (Jensen, 1996; Shi, 2003). This expresses that FD represents real accessibility of financial resources for productive operations and funding networks for ventures by banks and stock markets (Sadorsky, 2010). The financial development wanes CO2 emissions through CSR and eco-friendly strategies. From this viewpoint, environmental dilapidation lessens with financial advancement. In addition, it boosts research and development (R&D) efforts, fascinates FDI, and uninterruptedly upsurge economic operations to inspire the ecological quality due to investments in green-associated ventures (Charfeddine, et al., 2018; Hayat, et al., 2018). FD shrinks the leverage acquiring cost which attracts investment operations and stems the scatterings of lethal gasses by enhancing the efficiency of the energy sector (Tamazian and Rao, 2010). Thus, FD may wane the ecological deterioration by boosting industrial operations which obstruct the green atmosphere (Jensen, 1996). Their results support a direct association between financial development and CO2 emissions.