Panel analysis reveals CO2 emissions are driven by economic growth and freight transport in landlocked countries, indicating a need for greener strategies.
The transportation sector plays a pivotal role in economic development but is also a major contributor to environmental degradation due to its reliance on fossil fuels. This study explores the relationship between transport-related CO2 emissions, economic growth, road and rail freight transport, industry, trade openness, fossil fuel consumption, financial development, and renewable energy in ten landlocked countries from 1990 to 2022. Using panel cointegration tests and PMG-ARDL techniques, the findings reveal a bidirectional causality between CO2 emissions, road freight, financial development, and industry. Road freight transport significantly boosts economic growth but also intensifies emissions, while renewable energy effectively mitigates transport-related CO2. The results emphasize the need for policymakers to balance economic advancement with sustainable energy and emission reduction strategies. Achieving economic-energy sustainability is essential for fostering a green and clean environment without compromising growth.
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Messaoudi et al. (2025) studied this question.
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