Economic Development and Climate Change: An Empirical Study for Developing Nations
Journal Title: FOCUS: Journal of International Business - Year 2017, Vol 4, Issue 1
Abstract
Climate change does not yet feature conspicuously within the environmental or economic policy agenda of developing countries. Yet evidence shows that some of the most unfavourable effects of climate change will be in developing countries, where populations are most susceptible and least likely to easily adapt to climate change. The Environmental Kuznets Curve (EKC) hypothesis postulates the existence of an “inverted-U” shape relationship between per capita GDP and measures of environmental degradation. Various studies have addressed the direct relationship between environmental degradation and expanding economic activity so far. However, there is a need to establish the sustainable growth pairing with climate impact. This study examines the impact of economic development factors (Output, Energy usage, Direct Foreign Investment) on carbon emissions across BRIC economies and other developing nations, graphically using EKC hypotheses and empirically using GMM. Panel data over period 1991 to 2011 is used. The results validate that economic growth factors are elements of environmental quality in BRIC and developing economies. The paper indicates the relevance of making climate change policies a mainstream goal for global governance through increased carbon spacing.
Authors and Affiliations
Megha Jain
Keywords
Related Articles
- EP ID EP623171
- DOI 10.17492/focus.v4i01.9541
- Views 273
- Downloads 0
An Examination into the Role of Taxation in FDI Inflows and Stock in High, Middle and Low Income Countries
Many countries of the world are redesigning their taxation policies to offer a conducive tax environment to the MNCs so as to increase the level of FDI in the country. Through changes in taxation policy, they intend to b...
What worth is a BIT? Impact of BITs on FDI Inflows into India
Developing countries often consider foreign direct investment (FDI) as an engine to boost economic growth. Therefore they try to promote investment inflow by various means. One approach is to offer investment guarantees...
Accelerating Electric Vehicles Adoption: Considerations for Power Utilities and Automakers
Electric vehicles (EVs) are the biggest disruption the automotive industry has witnessed in several past decades and are expected to play a wider role in the global vehicle industry going forward. The study reviews exist...
Buckling up the One Belt One Road (OBOR) Initiative: Intentions of China and Ramifications for India
One Belt One Road (OBOR) is essentially a Chinese initiative to move up the value chain and to deal with its problems of overproduction of cement, steel and other products. It wants to shed its image as a nation producin...
Development of Institutional Theory and its Application to MNE Context: A Review of Literature
Institutional theory is an important framework for various research fields. It gives a general frame of reference as to what constitutes an institution and what are the factors that affect it. However, the theory require...