Do Recipient Country Characteristics Affect International Spillovers of CO2-Efficiency via Trade and Foreign Direct Investment?

Climatic Change, 112 (2), 2012, pp. 469-491

51 Pages Posted: 20 Aug 2009 Last revised: 17 Feb 2014

See all articles by Richard Perkins

Richard Perkins

London School of Economics - Department of Geography and Environment

Eric Neumayer

London School of Economics and Political Science (LSE)

Date Written: November 10, 2010

Abstract

Although there is evidence that CO¬2-efficiency enhancing innovations in one country diffuse into other countries to contribute to the goals of climate change mitigation, very little is known about the conditions under which such international spillovers are most likely to take place. Our contribution in the present article seeks to address this gap by examining whether the strength of cross-border CO2-efficiency spatial dependence working through import ties and inward foreign direct investment (FDI) stocks is greater in (a) countries with lower existing levels of domestic CO2-efficiency and (b) countries with greater social capabilities in terms of a better educated workforce and higher institutional quality. We find that less CO2-efficient countries and countries with higher institutional quality experience stronger FDI-weighted CO2-efficiency spillovers, whereas a higher level of human capital increases receptivity to import-weighted international spillovers.

Keywords: spillover, efficiency, imports, foreign direct investment, education, institutions

Suggested Citation

Perkins, Richard and Neumayer, Eric, Do Recipient Country Characteristics Affect International Spillovers of CO2-Efficiency via Trade and Foreign Direct Investment? (November 10, 2010). Climatic Change, 112 (2), 2012, pp. 469-491. Available at SSRN: https://ssrn.com/abstract=1458473 or http://dx.doi.org/10.2139/ssrn.1458473

Richard Perkins (Contact Author)

London School of Economics - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Eric Neumayer

London School of Economics and Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 207 955 7598 (Phone)
+44 207 955 7412 (Fax)

HOME PAGE: http://personal.lse.ac.uk/neumayer

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