IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i15p6341-d1442013.html
   My bibliography  Save this article

The Importance of Green Investments in Developed Economies—MCDM Models for Achieving Adequate Green Investments

Author

Listed:
  • Vladimir Ristanović

    (Institute of European Studies, Square of Nikola Pašić 11, 11000 Belgrade, Serbia)

  • Dinko Primorac

    (Department of Economy, University North, Jurija Križanića 31b, 42000 Varaždin, Croatia)

  • Barbara Dorić

    (Fortenova Group, Marijana Čavića 1, 10000 Zagreb, Croatia)

Abstract

Green investments help to create less harmful alternatives and adequate funds that contribute to economic growth, sustainable development, and social well-being. The paper aims to evaluate decision making on the choice of green investments based on multi-criteria decision making (MCDM). The applied methods are empirical and analytical based on the study of the literature, multi-criteria modeling, the determination of weights, and the ranking of criteria in deciding the green investment mapping of indicators, and mapping the indicators. The research used groups of indicators that reflect the main characteristics of green growth from the OECD database. The idea is to decide on the best green investment based on green growth criteria, which consist of grouped indicators according to the areas of the green economy rather than according to their values. The results of the Analytical Hierarchy Process (AHP method) showed that half of the investments in the green economy come from public sources (0.51) and the other half are private (0.25) and institutional investors (0.24), while the Best/Worst Method (BWM) revealed that the best criterion for the decision to invest in the green economy is the environmental and resource productivity of the economy, and the worst is the base of natural assets. This paper aims to enable decision-makers to use these results as weights for the overall assessment of green investments in ESG and to simplify the decision-making approach in future analyses.

Suggested Citation

  • Vladimir Ristanović & Dinko Primorac & Barbara Dorić, 2024. "The Importance of Green Investments in Developed Economies—MCDM Models for Achieving Adequate Green Investments," Sustainability, MDPI, vol. 16(15), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6341-:d:1442013
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/15/6341/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/15/6341/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andreea Ocolișanu & Gabriela Dobrotă & Dan Dobrotă, 2022. "The Effects of Public Investment on Sustainable Economic Growth: Empirical Evidence from Emerging Countries in Central and Eastern Europe," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    2. Boermans, Martijn A. & Galema, Rients, 2019. "Are pension funds actively decarbonizing their portfolios?," Ecological Economics, Elsevier, vol. 161(C), pages 50-60.
    3. Marcela Taušová & Peter Tauš & Lucia Domaracká, 2022. "Sustainable Development According to Resource Productivity in the EU Environmental Policy Context," Energies, MDPI, vol. 15(12), pages 1-15, June.
    4. Marko Šostar & Vladimir Ristanović, 2023. "Assessment of Influencing Factors on Consumer Behavior Using the AHP Model," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    5. Hafstead, Marc A.C. & Williams, Roberton C., 2018. "Unemployment and environmental regulation in general equilibrium," Journal of Public Economics, Elsevier, vol. 160(C), pages 50-65.
    6. Marko Šostar & Vladimir Ristanović, 2023. "An Assessment of the Impact of the COVID-19 Pandemic on Consumer Behavior Using the Analytic Hierarchy Process Model," Sustainability, MDPI, vol. 15(20), pages 1-31, October.
    7. Michael Greenstone, 2002. "The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufactures," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1175-1219, December.
    8. E. Mark Curtis, 2018. "Who Loses under Cap-and-Trade Programs? The Labor Market Effects of the NOx Budget Trading Program," The Review of Economics and Statistics, MIT Press, vol. 100(1), pages 151-166, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. E. Mark Curtis & Ioana Marinescu, 2023. "Green Energy Jobs in the United States: What Are They, and Where Are They?," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 4(1), pages 202-237.
    2. Marin, Giovanni & Vona, Francesco, 2019. "Climate policies and skill-biased employment dynamics: Evidence from EU countries," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Olivier Deschenes, 2018. "Environmental regulations and labor markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-22, November.
    4. repec:hal:spmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl is not listed on IDEAS
    5. Li, Zhuo & Li, Yuanqi, 2024. "Environmental regulation and employment: Evidence from China's new Environmental Protection Law," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 400-416.
    6. repec:spo:wpmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl is not listed on IDEAS
    7. Ferris, Ann E. & Frank, Eyal G., 2021. "Labor market impacts of land protection: The Northern Spotted Owl," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    8. Zekai He & Caihong Wen & Xinyou Yang, 2024. "Navigating the Green Transition: The Influence of Low-Carbon City Policies on Employment in China’s Listed Firms," Energies, MDPI, vol. 17(8), pages 1-23, April.
    9. Yang, Shubo & Jahanger, Atif & Hu, Juan & Awan, Ashar, 2024. "Impact of China's carbon emissions trading scheme on firm-level pollution abatement and employment: Evidence from a national panel dataset," Energy Economics, Elsevier, vol. 136(C).
    10. Jaiswal, Sreeja & Balietti, Anca & Schäffer, Daniel, 2023. "Environmental Protection and Labor Market Composition," Working Papers 0736, University of Heidelberg, Department of Economics.
    11. Wang, Huaxing & Li, Tianzi & Zhu, Junfan & Jian, Youting & Wang, Zeyu & Wang, Zengwen, 2023. "China's new environmental protection law: Implications for mineral resource policy, environmental precaution and green finance," Resources Policy, Elsevier, vol. 85(PB).
    12. repec:hal:spmain:info:hdl:2441/6d7es28iae9pjoil7092hs41h3 is not listed on IDEAS
    13. Mao, Jie & Wang, Chunhua & Yin, Haitao, 2023. "Corporate responses to air quality regulation: Evidence from a regional environmental policy in China," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    14. Liao, Tianlong & Liu, Guanchun & Liu, Yuanyuan & Lu, Rui, 2023. "Environmental regulation and corporate employment revisited: New quasi-natural experimental evidence from China's new environmental protection law," Energy Economics, Elsevier, vol. 124(C).
    15. Luke Haywood & Markus Janser & Nicolas Koch, 2024. "The Welfare Costs of Job Loss and Decarbonization: Evidence from Germany’s Coal Phaseout," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 11(3), pages 577-611.
    16. Francesco Vona, 2019. "Job losses and political acceptability of climate policies: why the ‘job-killing’ argument is so persistent and how to overturn it," Climate Policy, Taylor & Francis Journals, vol. 19(4), pages 524-532, April.
    17. Jiyu Zhao & Ning Zhang, 2023. "Environmental regulation and labor market: a bibliometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6095-6116, July.
    18. Wang, Chang’an & Liu, Xiaoqian & Li, Han & Yang, Cunyi, 2023. "Analyzing the impact of low-carbon city pilot policy on enterprises' labor demand: Evidence from China," Energy Economics, Elsevier, vol. 124(C).
    19. Curtis, E. Mark, 2020. "Reevaluating the ozone nonattainment standards: Evidence from the 2004 expansion," Journal of Environmental Economics and Management, Elsevier, vol. 99(C).
    20. Marko Å ostar & Ines Å koko, 2024. "Unpacking the Complexities of Energy Renovation Programs for Family Houses: Case Study of Croatia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 12-25, July.
    21. Marin, Giovanni & Vona, Francesco, 2021. "The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015," European Economic Review, Elsevier, vol. 135(C).
    22. repec:hal:spmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c is not listed on IDEAS
    23. Ruchi Avtar & Kristian S. Blickle & Rajashri Chakrabarti & Janavi Janakiraman & Maxim L. Pinkovskiy, 2023. "Understanding the Linkages between Climate Change and Inequality in the United States," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(1), pages 1-39, June.
    24. Marc A. C. Hafstead & Roberton C. Williams III, 2020. "Jobs and Environmental Regulation," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 1(1), pages 192-240.

    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:gam:jsusta:v:16:y:2024:i:15:p:6341-:d:1442013. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.