The influence of green energy investments on environmental quality in OECD countries

2018 ◽  
Vol 28 (2) ◽  
pp. 17-29 ◽  
Author(s):  
Fortune Ganda
Keyword(s):  
Environmental Quality ◽  
Oecd Countries ◽  
Green Energy

scholarly journals Foreign finance, economic growth and CO2 emissions Nexus in OECD countries

2019 ◽  
Vol 12 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Faris Alshubiri ◽  
Mohamed Elheddad
Keyword(s):  
Economic Growth ◽  
Linear Relationship ◽  
Environmental Quality ◽  
Foreign Investment ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Content Type ◽  
Non Linear ◽  
The Relationship ◽  
Threshold Point

Purpose This study aims to examine the relationship between foreign finance, economic growth and CO2 to investigate if the environmental Kuznets curve (EKC) exists as an empirical evidence in 32 selected Organization for Economic Co-operation and Development (OECD) countries. Design/methodology/approach This study used quantitative analysis to test two main hypotheses: H1 is the U-shape relationship between foreign finance and environment, and H2 is the N-shaped association between economic growth and environment. In doing so, this study used panel data techniques. The panel set contained 32 countries over the period from 1990 to 2015, with 27 observations for each country. This study applied a panel OLS estimator via fixed-effects control to address heterogeneity and mitigate endogeneity. Generalized method of moments (GMM) with fixed effects-instrumental variables (FE-IV) and diagnostic tests were also used. Findings The results showed that foreign finance and environmental quality have an inverted U-shaped association. The three proxies’ foreign investment, foreign assets and remittance in the first stages contribute significantly to CO2 emissions, but after the threshold point is reached, these proxies become “environmentally friendly” by their contribution to reducing CO2 emissions. Also, a non-linear relationship denotes that foreign investment in OECD countries enhances the importance, as a proxy of foreign finance has greater environmental quality than foreign assets. Additionally, empirical results show that remittances received is linked to the highest polluted levels until a threshold point is reached, at which point it then helps reduce CO2 emissions. The GMM and FE-IV results provide robust evidence on inverse U-shaped relationship, while the N-shaped relationship explains that economic growth produces more CO2 emissions at the first phase of growth, but the quadratic term confirms this effect is negative after a specific level of GDP is reached. Then, this economic growth makes the environment deteriorate. These results are robust even after controlling for the omitted variable issue. The IV-FE results indicate an N-shaped relationship in the OECD countries. Practical implications Most studies have used different economic indicators as proxies to show the effects of these indicators on the environment, but they are flawed and outdated regarding the large social challenges facing contemporary, socio-financial economic systems. To overcome these disadvantages, the social, institutional and environmental aspects of economic development should also be considered. Hence, this study aims to explain this issue as a relationship with several proxies in regard to environmental, foreign finance and economic aspects. Originality/value This paper uses updated data sets for analyzing the relationship between foreign finance and economic growth as a new proxy for pollution. Also, this study simulates the financial and environmental future to show their effect on investments in different OECD countries. While this study enhances the literature by establishing an innovative control during analysis, this will increase to add value. This study is among the few studies that empirically investigate the non-linear relationship between finance and environmental degradation.

scholarly journals How renewable energy consumption contribute to environmental quality? The role of education in OECD countries

2020 ◽  
Vol 268 ◽  
pp. 122149 ◽  
Author(s):  
Muhammad Wasif Zafar ◽  
Muhammad Shahbaz ◽  
Avik Sinha ◽  
Tuhin Sengupta ◽  
Quande Qin
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Oecd Countries ◽  
Renewable Energy Consumption

Investigation on the Job Creation Effect of Green Energy in OECD Countries

2020 ◽  
pp. 131-149
Author(s):  
Mehmet Akif Destek ◽  
Ferda Nakipoglu Ozsoy ◽  
Asli Ozpolat
Keyword(s):  
Job Creation ◽  
Oecd Countries ◽  
Green Energy

Multi-criteria decision-making in the evaluation of environmental quality of OECD countries

2019 ◽  
Vol 36 (1) ◽  
pp. 119-130
Author(s):  
Van Thac Dang ◽  
Wilson V.T. Dang
Keyword(s):  
Decision Making ◽  
Environmental Quality ◽  
Negative Impact ◽  
Oecd Countries ◽  
Economic Life ◽  
Multi Criteria Decision Making ◽  
Entropy Weight ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to use multi-criteria decision-making methods to assess environmental quality of the Organization for Economic Co-operation and Development (OECD) countries. Design/methodology/approach Weights of criteria are determined by means of entropy weight method. VIKOR method is used to rank different OECD countries based on their environmental quality. Findings The results show the best and the worst environmental quality of different OECD countries. The top five countries of environmental quality are Spain, Israel, Belgium, Japan and the USA. These countries have the best quality of environment. By contrast, the worst five countries of environmental quality are Iceland, Australia, New Zealand, Canada and Chile. Originality/value The findings have implications regarding environmental quality. The results suggest that governments should engage in policy-making that improves their environmental quality. Specifically, those having poor quality of environment should protect the environment and reduce the negative impact on environment. For example, reduce emission of CO2 to lessen the impact of climate change, improve the quality of air and water, reduce waste generation, increase biodiversity and enhance forest resources. Improvement of environmental quality will improve our social and economic life as well as health conditions.

Red and Green: Air Pollution Levels and Left Party Power in OECD Countries

1994 ◽  
Vol 12 (2) ◽  
pp. 225-241 ◽  
Author(s):  
R F King ◽  
A Borchardt
Keyword(s):  
Air Pollution ◽  
Environmental Quality ◽  
Comparative Politics ◽  
Oecd Countries ◽  
Policy Formulation ◽  
Previous Attempt ◽  
Pollution Levels ◽  
Left Party ◽  
National Tests ◽  
Party Strength

Recent review articles in environmental policy have called for more rigorous cross-national tests and for better integration with the standard literature on comparative politics and political economy. In this paper we take a first step in that direction, examining the relationship between air pollution and left party strength in seventeen OECD countries. Despite theoretical salience and political relevance, we know of no previous attempt of this sort. Three competing hypotheses exist. First, because of an historic agenda which emphasizes maximum employment and material welfare for the working class, left party strength might be associated with lower than normal environmental quality. Second, given the belief in government intervention to socialize the negative externalities of market capitalism, left party strength might motivate higher than normal environmental quality. Third, despite observed variations in agenda setting, policy formulation, and implementation, skeptics have often replied, “different styles, similar content”, suggesting no party relevance at all. Our analysis, controlling for quantitative energy consumption and qualitative economic structure, reveals a moderate but sustainable inverse relationship between left party strength and per capita levels of air pollution. In the conclusion we speculate how and why this result might occur.

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