IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v96y2024ipbs1057521924006471.html
   My bibliography  Save this article

World Trade Organization (WTO) trade policy reviews and green technology adoption: Global evidence

Author

Listed:
  • Tanveer, Arifa
  • Zeng, Shihong
  • Zaman, Rashid
  • Scagnelli, Simone

Abstract

This study examines the impact of WTO climate-related Trade Policy Reviews (TPR) on corporate efforts towards going green, specifically focusing on green technology adoption. Utilising a longitudinal sample comprising 30 countries from 2009 to 2019, the study provides original evidence that companies in countries with more frequent TPRs tend to adopt more green technologies. Channel analysis reveals that countries with climate-focused TPR entries, climate-related notifications, and climate-related measures effectively reduce managerial political risk perception, thereby facilitating the companies' adoption of green technologies. Additional analysis suggests a substitutive role of trade policy reviews (TPR) compared to firm-specific external monitors in promoting the adoption of green technologies. The findings also indicate a significant reduction in greenhouse gas (GHG) emissions resulting from the combined effect of climate-related TPR and increased green technology adoption. The study's baseline results remain robust even after applying various estimation techniques, such as Propensity Score matching, Entropy Balancing, and System GMM. This study's novel findings, emphasising the risk reduction and monitoring functions of such reviews in shaping companies' environmental strategies towards sustainability, provide valuable insights to policymakers, practitioners, and stakeholders.

Suggested Citation

  • Tanveer, Arifa & Zeng, Shihong & Zaman, Rashid & Scagnelli, Simone, 2024. "World Trade Organization (WTO) trade policy reviews and green technology adoption: Global evidence," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pb:s1057521924006471
    DOI: 10.1016/j.irfa.2024.103715
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521924006471
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103715?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Trade policy reviews (TPR); Green technology adoption; Political risk; External monitors; Greenhouse gas emissions (GHG);
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:96:y:2024:i:pb:s1057521924006471. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.