The Contribution of Foreign Direct Investment to Clean Energy Use, Carbon Emissions and Economic Growth

Energy Policy, Vol. 55 (2013), pp. 483-489. DOI: http://dx.doi.org/10.1016/j.enpol.2012.12.039

Posted: 15 Nov 2015 Last revised: 17 Dec 2017

See all articles by Jung Wan Lee

Jung Wan Lee

Boston University - Department of Administrative Sciences

Date Written: February 13, 2013

Abstract

The paper investigates the contributions of foreign direct investment (FDI) net inflows to clean energy use, carbon emissions, and economic growth. The paper employs cointegration tests to examine a long-run equilibrium relationship among the variables and fixed-effects models to examine the magnitude of FDI contributions to the other variables. The paper analyzes panel data of 19 nations of the G20 from 1971 to 2009. The test results indicate that FDI has played an important role in economic growth for the G20 whereas it limits its impact on an increase in CO2 emissions in the economies. The research finds no compelling evidence of FDI link with clean energy use. Given the results, the paper discusses FDI’s potential role in achieving green growth goals.

Keywords: clean energy use, foreign direct investment, carbon emissions

Suggested Citation

Lee, Jung Wan, The Contribution of Foreign Direct Investment to Clean Energy Use, Carbon Emissions and Economic Growth (February 13, 2013). Energy Policy, Vol. 55 (2013), pp. 483-489. DOI: http://dx.doi.org/10.1016/j.enpol.2012.12.039 . Available at SSRN: https://ssrn.com/abstract=2690489

Jung Wan Lee (Contact Author)

Boston University - Department of Administrative Sciences ( email )

808 Commonwealth Avenue
Boston, MA 02215
United States
617 358 5627 (Phone)
617 353 6840 (Fax)

HOME PAGE: http://www.bu.edu/met

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