Understanding the imperativeness of environmental-related technological innovations in the FDI – Environmental performance nexus

Uche, Emmanuel; Das, Narasingha; Bera, Pinki; Cifuentes‐Faura, Javier

doi:10.1016/j.renene.2023.02.060

Cited by 65 publications

(14 citation statements)

References 50 publications

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“…According to the findings of Durani et al [ 34 ] study, the impact of renewable energy helps control carbon emissions. The study of Uche et al [ 35 ] further revealed that renewable energy use in BRICS countries helps in carbon emissions mitigation. Bhowmik et al [ 36 ] study revealed that Climate Change Mitigation technology helps to control carbon emissions from the transport sector.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling

Gyimah,

Fiati,

Nwigwe

et al. 2023

PLoS ONE

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The concern for environmental sustainability comes along with sustainable energy for consumption. Therefore, this study aims to explore the direct and indirect effects of renewable energy on economic growth and carbon emissions by employing Partial Least Square Structure Equation Modeling and Granger Causality Test and the data for this study is from 1990 to 2021. The results from the Partial Least Squares Structure Equation Modeling indicate that renewable energy consumption causes carbon emissions and has no effect on economic growth. Financial inclusion and foreign direct investment have positive effects on carbon emissions. However, renewable energy has an indirect negative effect on carbon emissions through economic growth. Foreign direct investment affects economic growth positively. Furthermore, the results from the Granger causality test indicate that renewable energy has a unidirectional causality relationship with financial inclusion and foreign direct investment and has a feedback causality relationship with economic growth. In addition, there is a feedback causal effect between financial inclusion and carbon emissions, a unidirectional effect running from carbon emissions to foreign direct investment, and a causal effect from economic growth to foreign direct investment. This study has suggested comprehensive policy recommendations for policymakers based on the findings.

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Section: Literature Reviewmentioning

confidence: 99%

Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling

Gyimah,

Fiati,

Nwigwe

et al. 2023

PLoS ONE

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“…While scientific advancements have the potential to bring significant benefits, it is important to note that innovations driven purely by cost-benefit analysis may not always be environmentally friendly. however, by incorporating environmental-related technological innovations into FDI activities, these negative effects can be mitigated or even turned into positive outcomes (Uche et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

Impact of Foreign Direct Investment (FDI), Institutional Performance and Scientific Innovations on Environmental Degradation: Evidence from OIC Countries

Khan

Rehman

SANA

2023

RJSI

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The aim of this study is to examine the effect of foreign direct investment (FDI), institutional performance and scientific innovations on environmental degradation (ecological footprints) in selected OIC member countries. In this study, panel data analysis of selected OIC lower-middle income member countries over the period of 2000-2022 has been carried out. Cross-section dependance test has been done to check if there is cross-section dependence present among the variables and then second generation unit rot test has been employed to test the level of stationarity. Upon the recommendation of these tests, Pool Mean Group (PMG) has been applied to investigate the long run associations among the dependent and independent variables. The findings of this study show that FDI has significant negative impact on ecological footprint and has been acting as environmentally friendly in lower-middle countries. Scientific innovations has significant positive impact on ecological footprint whereas Institutional performance has positive impact on ecological footprint has significant negative impact in high lower-middle income countries. Furthermore, the study has trade openness has positive and significant impact on ecological footprint and GDP per capita has insignificant impact on ecological footprint.

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“…Irrational green transitions, however, could threaten financial stability and perhaps lead to financial problems. Additionally, it has an impact on achieving the Sustainable Development Goals (SDGs), which include responsible consumption and production of affordable, dependable, and clean energy, technological innovation in response to climate change, and sustainable economic growth (SDGs 7,8,9,12,and 13) (Monasterolo and Raberto, 2018;Lorente et al, 2023;Uche et al, 2023;Wang et al, 2023). Therefore, analyzing the impact of implementing CT and GSF on China's financial system stability during the low-carbon economic transition is essential.…”

Section: Introductionmentioning

confidence: 99%

The impact of climate change policies on financial stability of China

Meng,

Wang,

Ding

2023

Front. Environ. Sci.

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Climate transition risks pose growing financial stability concerns, but research on quantifying climate policy impacts remains underexplored. This paper helps address this gap by evaluating how carbon tax (CT) and green supporting factor (GSF) influence China’s financial stability. An innovative dynamic stochastic general equilibrium (DSGE) model incorporating the banking sector is developed to quantify transmission channels, improving on conceptual studies. It reveals that more intense climate policies heighten impacts on financial stability, with CT improving it but GSF hampering it in the long run. However, both policies negatively affect stability initially, albeit insignificantly. These diagnostics underscore calibrating policy intensities and sequencing to balance climate and economic objectives. Furthermore, this study reveals asymmetric effects on polluting and non-polluting enterprises, with the former seeing reduced output and lending but the latter gaining. The differentiated approach proposed, tailored to firm emissions levels, provides key insights for unlocking smooth green transitions while maintaining financial system resilience. The paper makes important contributions by bringing together climate policies, adaptation, and financial stability. The findings offer insights into achieving a smooth climate transition while maintaining financial stability. Specific implications include starting with low CT on the heaviest emitters, gradually lowering risk weights for green lending, and using public incentives and investment to aid polluting firms’ transition. This study offers valuable quantitative insights for developing country-specific climate financial risk policies.

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Understanding the imperativeness of environmental-related technological innovations in the FDI – Environmental performance nexus

Cited by 65 publications

References 50 publications

Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling

Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling

Impact of Foreign Direct Investment (FDI), Institutional Performance and Scientific Innovations on Environmental Degradation: Evidence from OIC Countries

The impact of climate change policies on financial stability of China

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