Exploring the impact of environmental, social, and governance on clean development mechanism implementation through an institutional approach

Abstract

The study hypothesizes that the environmental, social, and governance (ESG) of the host country have a significant effect on clean development mechanism (CDM) implementation. As CDM incorporates sustainable development as one of the objectives for the green transition, many countries endeavor to adopt and implement CDM as their cleaner production method. Based on the institutional theory, the study aims to investigate the mechanism by which the institutional process of each ESG pillar makes an opportunity for a host country and to see how such country-specific factors influence the implementation of CDM projects. A county-year unbalanced sample drawn from World Bank and multinational CDM project data was analyzed using panel logistic and Poisson regression. Panel regression results show that high-energy intensity and low renewable electricity output as an environmental pillar positively affect CDM implementation. Unemployment and undernourishment as a social pillar positively affect CDM whereas low government effectiveness and the high rule of law positively affect CDM. In the results of zero-inflated Poisson regression, the direction of government effectiveness was upturned. The findings have broadened and deepened the ESG pillar based on the institutional theory and emphasized sustainable development rather than economic outputs.

The institutional approach to the development of education in the social and investment model of Russia's economic growth

“…The connection between social investments and economic growth Positive connection, which makes the social and investment model of economic growth natural and organic in developed countries (Prada-Blanco and Sanchez-Fernandez, 2017;Marino et al, 2021;Xie, 2021;Bajraktari et al, 2022) Negative connection, which hinders the developing countries' transitioning to the social and investment model of economic growth (proved by the example of the CIS countries) Role of institutes in the implementation of the social and investment model of economic growth Direct role: direct stimulation of social investments, including state financing of higher education (Wong and Chu, 2020;Askari and El Refae, 2022;Fadda et al, 2022;Lee et al, 2022;Lima et al, 2022;Usman and Ab Rahman, 2023) Indirect role: the creation of a common stable macro-economic situation and favorable investment climate with the market self-regulation of social investments Source: Authors.…”

“…This link makes the social and investment model of economic growth natural and organic in developed countries (Prada-Blanco and Sanchez-Fernandez, 2017;Marino et al, 2021). Wong and Chu (2020), Lee et al (2022), and Lima et al ( 2022) point to the direct role of institutes in implementing the social and investment model of economic growth. This direct role consists of the direct stimulation of social investments, including state financing of higher education (Askari and El Refae, 2022;Fadda et al, 2022;Usman and Ab Rahman, 2023).…”

Factors Influencing Intergovernmental Cooperation on Emission Reduction in Chengdu-Chongqing Urban Agglomeration: An Evolutionary Game Theory Perspective

“…The third option is to use the clean development mechanism, which is a cooperative mode in which one country invests in emission reduction projects in order to obtain carbon emissions from other countries in order to achieve emission reduction. Academics elaborated on the impact factors of implementing the clean development mechanism [ 31 , 32 ] as well as the impact of industry differences [ 33 ]. The fourth step is to form regional alliances in order to achieve total emission reductions through joint implementation.…”