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Exploring country characteristics that encourage emissions reduction

Author

Listed:
  • Panayiotis C. Andreou

    (Cyprus University of Technology and Durham University)

  • Sofia Anyfantaki
  • Christos Cabolis

    (IMD Business School)

  • Konstantinos Dellis

    (University of Piraeus)

Abstract

We explore the relation between sound institutions favouring innovation and technology investment and firms’ emissions reduction. Even though emission abatement is achieved at the firm or plant level, we postulate that structural and institutional fac- tors underpinning green innovation, skills and technology adoption at the country level are of material importance. Advances in technology and infrastructure are the main drivers for the reduction of emissions and are, in turn, intrinsically linked to overall country characteristics. Sound institutions can act as enablers and accelerators for firms and industries in the green transition process, hence we find an attenuating effect on emissions conditional on firm attributes.

Suggested Citation

  • Panayiotis C. Andreou & Sofia Anyfantaki & Christos Cabolis & Konstantinos Dellis, 2023. "Exploring country characteristics that encourage emissions reduction," Working Papers 323, Bank of Greece.
    • Handle: RePEc:bog:wpaper:323
    DOI: 10.52903/wp2022323
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    More about this item

    Keywords

    Emissions; Institutions; Technological infrastructure; Skills; Innovation; EU ETS;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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