This article explores carbon dioxide (CO2) emissions and economic development in Lao PDR, in the context of the country’s urgent need and prospects for economic self-development. By employing an auto-regressive distributed lag (ARDL) bounds model, the empirical results show that gross domestic product (GDP) has a statistically significant and positive effect on CO2 emissions. The article also affirms the existence of co-integration among pertinent variables and substantiates the positive long-term shock between CO2 and GDP. Within reality, these results confirm the presence of causality running from foreign direct investment (FDI) and GDP to CO2. Despite its limitations, this study is a pioneering exploration of empirical evidence regarding Lao PDR’s yearning and prospects for economic self-development, toward which gravitate the article’s future research directions and policymaking recommendations.
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