Do innovation, financial development and institutional quality matter in managing carbon risk?
ABSTRACTUsing territorial- and consumption-based carbon emissions as proxies for carbon risk, the study examined the impact of innovation on carbon risk while controlling for institutional quality and financial development effects in the BRICS countries (Brazil, Russia, India, China, and South Afric...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Sustainable Environment |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/27658511.2023.2293214 |
| _version_ | 1797386375818903552 |
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| author | Francis Atsu Samuel Adams |
| author_facet | Francis Atsu Samuel Adams |
| author_sort | Francis Atsu |
| collection | DOAJ |
| description | ABSTRACTUsing territorial- and consumption-based carbon emissions as proxies for carbon risk, the study examined the impact of innovation on carbon risk while controlling for institutional quality and financial development effects in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 1986 to 2021. To address cross-sectional dependence and ensure robustness, we employed the augmented mean group (AMG) and cross-sectional autoregressive distributed lags (CS-ARDL) estimation techniques. Our findings show that innovation plays a key role in mitigating carbon risks, with a more pronounced effect on territorial carbon risk compared to consumption-based carbon risk. Furthermore, financial development exerts a positive influence on carbon risk, especially in the context of consumption-based emissions. Notably, institutional quality mitigates both forms of carbon risk. These outcomes suggest that BRICS countries should consider the types of carbon risk when formulating carbon emissions mitigation strategies. |
| first_indexed | 2024-03-08T22:09:27Z |
| format | Article |
| id | doaj.art-6dd38c1ea5b24ca0bbe3e969c52a2aa4 |
| institution | Directory Open Access Journal |
| issn | 2765-8511 |
| language | English |
| last_indexed | 2024-03-08T22:09:27Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Sustainable Environment |
| spelling | doaj.art-6dd38c1ea5b24ca0bbe3e969c52a2aa42023-12-19T07:14:48ZengTaylor & Francis GroupSustainable Environment2765-85112024-12-0110110.1080/27658511.2023.2293214Do innovation, financial development and institutional quality matter in managing carbon risk?Francis Atsu0Samuel Adams1Department of Accounting and Finance, Business School, Ghana Institute of Management and Public Administration, Accra, GhanaSchool of Public Service and Governance, Ghana Institute of Management and Public Administration, Accra, GhanaABSTRACTUsing territorial- and consumption-based carbon emissions as proxies for carbon risk, the study examined the impact of innovation on carbon risk while controlling for institutional quality and financial development effects in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 1986 to 2021. To address cross-sectional dependence and ensure robustness, we employed the augmented mean group (AMG) and cross-sectional autoregressive distributed lags (CS-ARDL) estimation techniques. Our findings show that innovation plays a key role in mitigating carbon risks, with a more pronounced effect on territorial carbon risk compared to consumption-based carbon risk. Furthermore, financial development exerts a positive influence on carbon risk, especially in the context of consumption-based emissions. Notably, institutional quality mitigates both forms of carbon risk. These outcomes suggest that BRICS countries should consider the types of carbon risk when formulating carbon emissions mitigation strategies.https://www.tandfonline.com/doi/10.1080/27658511.2023.2293214Innovationcross-sectional dependenceterritorial carbon riskconsumption carbon riskinstitutional quality and financial development |
| spellingShingle | Francis Atsu Samuel Adams Do innovation, financial development and institutional quality matter in managing carbon risk? Sustainable Environment Innovation cross-sectional dependence territorial carbon risk consumption carbon risk institutional quality and financial development |
| title | Do innovation, financial development and institutional quality matter in managing carbon risk? |
| title_full | Do innovation, financial development and institutional quality matter in managing carbon risk? |
| title_fullStr | Do innovation, financial development and institutional quality matter in managing carbon risk? |
| title_full_unstemmed | Do innovation, financial development and institutional quality matter in managing carbon risk? |
| title_short | Do innovation, financial development and institutional quality matter in managing carbon risk? |
| title_sort | do innovation financial development and institutional quality matter in managing carbon risk |
| topic | Innovation cross-sectional dependence territorial carbon risk consumption carbon risk institutional quality and financial development |
| url | https://www.tandfonline.com/doi/10.1080/27658511.2023.2293214 |
| work_keys_str_mv | AT francisatsu doinnovationfinancialdevelopmentandinstitutionalqualitymatterinmanagingcarbonrisk AT samueladams doinnovationfinancialdevelopmentandinstitutionalqualitymatterinmanagingcarbonrisk |