Economic Growth, Renewable Energy and Environmental Quality in the Republic of Moldova: Evidence from ARDL and NARDL Frameworks

This study examines the asymmetric effects of GDP, FDI, renewable energy consumption and urbanization on CO 2 emissions in the Republic of Moldova from 1990 to 2023. Despite growing interest in the Environmental Kuznets Curve (EKC), few studies explore this relationship in small, transition economies. Using ARDL and NARDL models, we address this gap by uncovering both linear and nonlinear dynamics. Results confirm the EKC hypothesis and highlight renewable energy as a key factor in reducing emissions. FDI shows asymmetric effects; positive inflows support the pollution halo hypothesis, while negative shocks worsen environmental outcomes. Urbanization yields mixed effects. These findings suggest that the Republic of Moldova should promote clean energy investments, attract environmentally friendly FDI and integrate sustainability into urban development strategies.