Human Capital Development and its Impact on Environmental Sustainability in OIC Nations: A Panel Data Approach

Abstract

Education has the potential to play a vital role in reducing a countrys carbon dioxide emissions and other environmental problems by fostering a sense of social responsibility. However, in some developing countries, increasing education levels may lead to a slight rise in carbon emissions due to greater economic expansion and productivity. Twenty countries from the Organization of Islamic Cooperation (OIC) are studied to determine the impact of human capital on carbon dioxide emissions between 1990 and 2019. The study was conducted using a panel static approach. The findings reveal a significantly positive correlation between CO2 emissions, gross domestic product, and trade openness. At the same time, education, foreign direct investment, and the interaction between the country dummy and year of schooling are negatively related to CO2 emissions in OIC countries. Policymakers can leverage these results to devise strategies that incorporate environmental education to reduce CO2 emissions. Carbon taxes and renewable energy subsidies are two policy changes that aim to reduce CO2 emissions and can be better understood if more people are educated about them. Supporting these adjustments will help persuade governments and businesses to combat climate change.

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