Proceedings of the 12th International Conference on Opportunities and Challenges in Management, Economics and Accounting
Year: 2024
DOI:
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Analysis of Dеtеrminants and Consеquеncеs of Grееn Invеstmеnt: An Еmpirical Study
Lmati Nour, Baddi Hicham
ABSTRACT:
In the face of the climate emergency, understanding the determinants and consequences of green investments is crucial to accelerating the ecological transition. This study analyzes these aspects in a global macroeconomic context, using a panel ARDL model on 35 countries from 1995 to 2019. Our innovative approach integrates the analysis of both determinants and consequences, thus offering a comprehensive perspective on the dynamics of green investments. The results reveal that GDP per capita and population growth are significant drivers of green investments, with elasticities of 0.8047 and 1.1230, respectively. International financing plays a crucial role, with external debt having a significant positive impact (elasticity of 0.1094). Regarding the consequences, we observe a complex relationship between green investments and CO2 emissions, varying from -0.590 to 0.784 depending on the income level of the countries. This study highlights the importance of an integrated approach in the development of environmental policies, emphasizing the need to consider both the factors that stimulate green investments and their environmental impacts. Our results offer essential insights for policymakers in developing effective ecological transition strategies, accounting for the complex interactions between economic growth, demographic dynamics, financial policies, and environmental objectives.
keywords: Grееn invеstmеnts, Panеl ARDL modеl, Еconomic growth, Еxtеrnal dеbt, CO2 еmissions, Intеrnational financing, Еnеrgy transition