Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions

In the last two decades, the surge in carbon emissions has escalated environmental damage and is a major concern globally. Recognized as a significant threat to humanity, unchecked environmental degradation can potentially hinder the achievement of sustainable development. As a result, accurate moni...

Full description

Saved in:
Bibliographic Details
Main Authors: Ali Raza, Kamran Azam, Asad Ul Islam Khan, Waqar Badshah
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188824001035
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850251542893953024
author Ali Raza
Kamran Azam
Asad Ul Islam Khan
Waqar Badshah
author_facet Ali Raza
Kamran Azam
Asad Ul Islam Khan
Waqar Badshah
author_sort Ali Raza
collection DOAJ
description In the last two decades, the surge in carbon emissions has escalated environmental damage and is a major concern globally. Recognized as a significant threat to humanity, unchecked environmental degradation can potentially hinder the achievement of sustainable development. As a result, accurate monitoring of carbon emissions becomes imperative for formulating effective climate policies. Taking into consideration, this study has taken the newly developed consumption-based carbon emissions measure to study the pollution haven hypothesis and examine the link between Greenfield Investment (GFI) inflows to host nations and their environmental impact for 85 developing countries from 1990 to 2020. The results show a positive correlation between Greenfield investment and Consumption-based Carbon Dioxide Emissions (CCO2) in sampled nations. Similarly, energy usage and export damage the environment because developing countries rely on conventional and old methods of energy usage. The results were further analyzed for low, lower middle, and upper middle income countries as well. The subsample outcome shows that Greenfield investment has a more damaged environment in low income countries as compared to lower middle and upper middle income countries. These insights underscore the urgency for developing countries to adopt environmentally conscious policies to attract international investors. It also emphasizes the need for stringent regulations aimed at curbing environmental pollution and complying with the Sustainable Development Goals (SDGs). Similarly, low and lower middle income countries to attract Greenfield investment, may also focus more on strict environmental pollution policies. Industries must be shifted from conventional energy methods to renewable energy sources. Sustainable Development Goals; 7, 12, and 13 can be achieved by host countries, alluring investors to invest in terms of Greenfield in renewable energy resources, which would be used in automobile transportation, to shift industries from conventional energy resources to renewable energy resources. The same Greenfield investment would also be used in bringing efficient machinery for more production in industries with minimal environmental pollution.
format Article
id doaj-art-e6fe4c8a35af4cdfa5bbe02fbaec5842
institution OA Journals
issn 2666-1888
language English
publishDate 2024-12-01
publisher Elsevier
record_format Article
series Sustainable Futures
spelling doaj-art-e6fe4c8a35af4cdfa5bbe02fbaec58422025-08-20T01:57:52ZengElsevierSustainable Futures2666-18882024-12-01810025310.1016/j.sftr.2024.100253Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissionsAli Raza0Kamran Azam1Asad Ul Islam Khan2Waqar Badshah3Institute of Management Sciences, The University of Haripur, Pakistan; Corresponding author.Institute of Management Sciences, The University of Haripur, PakistanDepartment of Economics, Ibn Haldun University Istanbul, TurkeyFaculty of Economics, Istanbul University, TurkeyIn the last two decades, the surge in carbon emissions has escalated environmental damage and is a major concern globally. Recognized as a significant threat to humanity, unchecked environmental degradation can potentially hinder the achievement of sustainable development. As a result, accurate monitoring of carbon emissions becomes imperative for formulating effective climate policies. Taking into consideration, this study has taken the newly developed consumption-based carbon emissions measure to study the pollution haven hypothesis and examine the link between Greenfield Investment (GFI) inflows to host nations and their environmental impact for 85 developing countries from 1990 to 2020. The results show a positive correlation between Greenfield investment and Consumption-based Carbon Dioxide Emissions (CCO2) in sampled nations. Similarly, energy usage and export damage the environment because developing countries rely on conventional and old methods of energy usage. The results were further analyzed for low, lower middle, and upper middle income countries as well. The subsample outcome shows that Greenfield investment has a more damaged environment in low income countries as compared to lower middle and upper middle income countries. These insights underscore the urgency for developing countries to adopt environmentally conscious policies to attract international investors. It also emphasizes the need for stringent regulations aimed at curbing environmental pollution and complying with the Sustainable Development Goals (SDGs). Similarly, low and lower middle income countries to attract Greenfield investment, may also focus more on strict environmental pollution policies. Industries must be shifted from conventional energy methods to renewable energy sources. Sustainable Development Goals; 7, 12, and 13 can be achieved by host countries, alluring investors to invest in terms of Greenfield in renewable energy resources, which would be used in automobile transportation, to shift industries from conventional energy resources to renewable energy resources. The same Greenfield investment would also be used in bringing efficient machinery for more production in industries with minimal environmental pollution.http://www.sciencedirect.com/science/article/pii/S2666188824001035Greenfield investmentConsumption based carbon emissionsPollution haven hypothesisDeveloping countries
spellingShingle Ali Raza
Kamran Azam
Asad Ul Islam Khan
Waqar Badshah
Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
Sustainable Futures
Greenfield investment
Consumption based carbon emissions
Pollution haven hypothesis
Developing countries
title Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
title_full Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
title_fullStr Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
title_full_unstemmed Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
title_short Balancing growth and sustainability: The impact of Greenfield investment on trade adjusted carbon emissions
title_sort balancing growth and sustainability the impact of greenfield investment on trade adjusted carbon emissions
topic Greenfield investment
Consumption based carbon emissions
Pollution haven hypothesis
Developing countries
url http://www.sciencedirect.com/science/article/pii/S2666188824001035
work_keys_str_mv AT aliraza balancinggrowthandsustainabilitytheimpactofgreenfieldinvestmentontradeadjustedcarbonemissions
AT kamranazam balancinggrowthandsustainabilitytheimpactofgreenfieldinvestmentontradeadjustedcarbonemissions
AT asadulislamkhan balancinggrowthandsustainabilitytheimpactofgreenfieldinvestmentontradeadjustedcarbonemissions
AT waqarbadshah balancinggrowthandsustainabilitytheimpactofgreenfieldinvestmentontradeadjustedcarbonemissions