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Understanding the imperativeness of environmental-related technological innovations in the FDI – Environmental performance nexus

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  • Uche, Emmanuel
  • Das, Narasingha
  • Bera, Pinki
  • Cifuentes-Faura, Javier

Abstract

The inflow of foreign direct investment (FDI) is considered a veritable pathway to the developmental prospects of emerging economies. To some, FDI bridles environmental pollution, while to others, it enhances environmental performance. For updated insights, we critiqued the effect of FDI on environmental quality amidst environmental-related technological innovations (EVT) within the BRICS economies. On the basis of the random coefficients regression and the panel nonlinear-ARDL (PNARDL) technique notable for robust estimates even in the face of cross-sectional exigencies, it is rectified that the enlisted series trend towards long-run equilibrium. The estimates also indicate that carbon emissions in BRICS countries are systemic, and must be fought head-on to attain sustainable development. Furthermore, FDI and EVT, to an extent and with some variations across the countries, compromised environmental quality significantly, but with the passage of time, the interactions of both factors ensure cleaner environments. Additionally, human capital development and renewable energy consumption mitigate pollution in the BRICS countries against the negative impact of traditional energy consumptions. The outcome of the nonlinear specification also establishes that both positive and negative interactions of FDI and technology stimulate cleaner environments, but the effects are asymmetric in both the long and short run.

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  • Uche, Emmanuel & Das, Narasingha & Bera, Pinki & Cifuentes-Faura, Javier, 2023. "Understanding the imperativeness of environmental-related technological innovations in the FDI – Environmental performance nexus," Renewable Energy, Elsevier, vol. 206(C), pages 285-294.
    • Handle: RePEc:eee:renene:v:206:y:2023:i:c:p:285-294
    DOI: 10.1016/j.renene.2023.02.060
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    Cited by:

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    2. Nguyen, Thi Hao & Deng, Hongbing & Abbas, Zainab Zahra & Lam, Thi Thoa & Abbas, Hussain Raza, 2024. "The effect of natural capital, regional development, FDI, and natural resource rent on environmental performance: The Mediating role of green innovation," Resources Policy, Elsevier, vol. 91(C).
    3. Yukun Cao & Jingxuan Cai & Xiangyue Liu, 2024. "RETRACTED ARTICLE: Advancing toward a sustainable future: assessing the impact of energy transition, circular economy, and international trade on carbon footprint," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-26, April.
    4. Uche, Emmanuel & Das, Narasingha & Ngepah, Nicholas, 2024. "Green environments reimagined through the lens of green finance, green innovations, green taxation, and green energies. Wavelet quantile correlation and rolling window-based quantile causality perspec," Renewable Energy, Elsevier, vol. 228(C).
    5. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Mukhtarov, Shahriyar, 2024. "Technological changes and carbon neutrality targets in European countries: A sustainability approach with Fourier approximations," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

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