Carbon neutrality and green investment

Janjua, Laeeq Razzak; Ul-Durar, Shajara; Malik, Firdous Ahmad

Abstract

The need for renewable energy and green investment has recently increased massively due to its sustainability and environmentally friendly nature. Additionally, traditional energy sources contribute to pollution, climate change, and environmental harm. Considering these factors, sustainable development entails optimal energy use while assuring energy availability for all people worldwide. This chapter explores the impact of renewable energy usage and green investment on carbon emissions in the presence of carbon neutrality factors. This research used the sample from the top 10 carbon emission countries from OECD over the period 2000–2021. By applying fixed effect Driscoll-Kraay and Feasible generalized least squares estimation, this research demonstrates that the increase in forest area (FA), renewable energy usage RE), and environmental patents decrease carbon dioxide emission. In contrast, fossil fuel usage (FF) and foreign direct investment (FDI) inflow harm the environment. Therefore, the government should increase the awareness of green investment usage to maintain environmental sustainability in OECD countries.

Citation

Janjua, L. R., Ul-Durar, S., & Malik, F. A. (2023). Carbon neutrality and green investment. In Recent Developments in Green Finance, Green Growth and Carbon Neutrality (383-405). Elsevier. https://doi.org/10.1016/b978-0-443-15936-7.00017-7

• Acceptance Date: Jul 28, 2023
• Online Publication Date: Aug 25, 2023
• Publication Date: 2023
• Deposit Date: Feb 5, 2024
• Publisher: Elsevier
• Pages: 383-405
• Book Title: Recent Developments in Green Finance, Green Growth and Carbon Neutrality
• Chapter Number: 17
• ISBN: 9780443159367
• DOI: https://doi.org/10.1016/b978-0-443-15936-7.00017-7
• Public URL: https://durham-repository.worktribe.com/output/1947910