FDI inflows and carbon emissions: new global evidence
Abstract This study investigates the environmental consequences of foreign direct investment (FDI) inflows, focusing on their impact on carbon (CO2) emissions. The findings indicate that FDI inflows significantly contribute to increased CO2 emissions, both in total quantity and intensity. Low- and m...
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| Format: | Article |
| Language: | English |
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Springer
2025-05-01
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| Series: | Discover Sustainability |
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| Online Access: | https://doi.org/10.1007/s43621-025-01292-9 |
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| author | Phuong M. H. Pham Tung D. Nguyen My Nguyen Nguyen T. Tran |
| author_facet | Phuong M. H. Pham Tung D. Nguyen My Nguyen Nguyen T. Tran |
| author_sort | Phuong M. H. Pham |
| collection | DOAJ |
| description | Abstract This study investigates the environmental consequences of foreign direct investment (FDI) inflows, focusing on their impact on carbon (CO2) emissions. The findings indicate that FDI inflows significantly contribute to increased CO2 emissions, both in total quantity and intensity. Low- and middle-income nations are disproportionately affected. Additionally, higher levels of institutional quality, financial development, and technological innovation amplify the positive relationship between FDI and emissions. This positive link can be explained by the scale effect, where increased economic activity from FDI leads to higher energy use and emissions. This study also reveals the dual role of institutional quality, financial development, and technological innovation in moderating the environmental impact of FDI. While these factors facilitate growth and attract investment, they can also result in increased emissions if sustainability is not prioritized. These findings offer meaningful implications for policymakers seeking to balance economic growth with sustainability, especially in regions vulnerable to increased emissions due to FDI. Graphical Abstract |
| format | Article |
| id | doaj-art-3e443ba3b5684c6187d41832c2ff328e |
| institution | OA Journals |
| issn | 2662-9984 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Sustainability |
| spelling | doaj-art-3e443ba3b5684c6187d41832c2ff328e2025-08-20T01:52:22ZengSpringerDiscover Sustainability2662-99842025-05-016111810.1007/s43621-025-01292-9FDI inflows and carbon emissions: new global evidencePhuong M. H. Pham0Tung D. Nguyen1My Nguyen2Nguyen T. Tran3Faculty of Finance and Banking, Academy of Policy and DevelopmentFaculty of Finance and Banking, Academy of Policy and DevelopmentInternational School, Vietnam National UniversityAcademy of Policy and DevelopmentAbstract This study investigates the environmental consequences of foreign direct investment (FDI) inflows, focusing on their impact on carbon (CO2) emissions. The findings indicate that FDI inflows significantly contribute to increased CO2 emissions, both in total quantity and intensity. Low- and middle-income nations are disproportionately affected. Additionally, higher levels of institutional quality, financial development, and technological innovation amplify the positive relationship between FDI and emissions. This positive link can be explained by the scale effect, where increased economic activity from FDI leads to higher energy use and emissions. This study also reveals the dual role of institutional quality, financial development, and technological innovation in moderating the environmental impact of FDI. While these factors facilitate growth and attract investment, they can also result in increased emissions if sustainability is not prioritized. These findings offer meaningful implications for policymakers seeking to balance economic growth with sustainability, especially in regions vulnerable to increased emissions due to FDI. Graphical Abstracthttps://doi.org/10.1007/s43621-025-01292-9FDICO2 emissionsInstitutional qualityFinancial developmentAnd technological innovation |
| spellingShingle | Phuong M. H. Pham Tung D. Nguyen My Nguyen Nguyen T. Tran FDI inflows and carbon emissions: new global evidence Discover Sustainability FDI CO2 emissions Institutional quality Financial development And technological innovation |
| title | FDI inflows and carbon emissions: new global evidence |
| title_full | FDI inflows and carbon emissions: new global evidence |
| title_fullStr | FDI inflows and carbon emissions: new global evidence |
| title_full_unstemmed | FDI inflows and carbon emissions: new global evidence |
| title_short | FDI inflows and carbon emissions: new global evidence |
| title_sort | fdi inflows and carbon emissions new global evidence |
| topic | FDI CO2 emissions Institutional quality Financial development And technological innovation |
| url | https://doi.org/10.1007/s43621-025-01292-9 |
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