Greenfield Investment as a Catalyst of Green Economic Growth
The intensification of countries’ growth causes the depletion of natural resources, biodiversity degradation, ecological imbalances, damage, and disasters. The aggravation of ecological issues requires the development of mechanisms for simultaneous achievement of economic, social, and ecological goa...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-03-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/16/5/2372 |
| _version_ | 1797615398636486656 |
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| author | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko |
| author_facet | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko |
| author_sort | Aleksy Kwilinski |
| collection | DOAJ |
| description | The intensification of countries’ growth causes the depletion of natural resources, biodiversity degradation, ecological imbalances, damage, and disasters. The aggravation of ecological issues requires the development of mechanisms for simultaneous achievement of economic, social, and ecological goals. The energy sector is the core direction of economic decarbonization. Therefore, green economic growth requires economic development due to the extension of innovative technologies for renewable energies and relevant investment for that. The study aims to test the hypothesis on the impact of green field investment on green economic growth. The object of the research was countries in the European Union (EU) for 2006–2020. This study applied the Malmquist-Luenberger Global Productivity Index to estimate green economic growth. It considers the resources available for the production process in the country (labor, capital, energy), the desired outcome (gross domestic product) and undesirable results (emissions to the environment) of this process. The study applied the Tobit model to test the hypothesis. The findings confirm the spatial heterogeneity of green economic growth among the EU countries. The asymmetry in technological efficiency and progress limits the efficacy of green innovations. At the same time, the obtained data confirm the research hypothesis. It is shown that along with green investments, economic openness and the efficiency of public governance have a positive effect on the green economic growth of countries. The findings highlight the importance of attracting green investments to increase green innovations in renewable energy, which boost green economic growth. This study explored the linear and direct effects of green investment on the green economic growth while eliminating the transmission impact of other mediating factors. It should be noted that further research should analyze the nonlinear impact of green investment on the green economic growth and the mediating effect, which could be caused by other variables (corruption, governance efficiency, green innovations, etc.). |
| first_indexed | 2024-03-11T07:25:42Z |
| format | Article |
| id | doaj.art-9b5905ad838546ed936b201ef8a3ff56 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T07:25:42Z |
| publishDate | 2023-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-9b5905ad838546ed936b201ef8a3ff562023-11-17T07:37:45ZengMDPI AGEnergies1996-10732023-03-01165237210.3390/en16052372Greenfield Investment as a Catalyst of Green Economic GrowthAleksy Kwilinski0Oleksii Lyulyov1Tetyana Pimonenko2Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, PolandDepartment of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, PolandDepartment of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, PolandThe intensification of countries’ growth causes the depletion of natural resources, biodiversity degradation, ecological imbalances, damage, and disasters. The aggravation of ecological issues requires the development of mechanisms for simultaneous achievement of economic, social, and ecological goals. The energy sector is the core direction of economic decarbonization. Therefore, green economic growth requires economic development due to the extension of innovative technologies for renewable energies and relevant investment for that. The study aims to test the hypothesis on the impact of green field investment on green economic growth. The object of the research was countries in the European Union (EU) for 2006–2020. This study applied the Malmquist-Luenberger Global Productivity Index to estimate green economic growth. It considers the resources available for the production process in the country (labor, capital, energy), the desired outcome (gross domestic product) and undesirable results (emissions to the environment) of this process. The study applied the Tobit model to test the hypothesis. The findings confirm the spatial heterogeneity of green economic growth among the EU countries. The asymmetry in technological efficiency and progress limits the efficacy of green innovations. At the same time, the obtained data confirm the research hypothesis. It is shown that along with green investments, economic openness and the efficiency of public governance have a positive effect on the green economic growth of countries. The findings highlight the importance of attracting green investments to increase green innovations in renewable energy, which boost green economic growth. This study explored the linear and direct effects of green investment on the green economic growth while eliminating the transmission impact of other mediating factors. It should be noted that further research should analyze the nonlinear impact of green investment on the green economic growth and the mediating effect, which could be caused by other variables (corruption, governance efficiency, green innovations, etc.).https://www.mdpi.com/1996-1073/16/5/2372sustainable developmentgreen investmentgreen growthgreen energyrenewable energy |
| spellingShingle | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko Greenfield Investment as a Catalyst of Green Economic Growth Energies sustainable development green investment green growth green energy renewable energy |
| title | Greenfield Investment as a Catalyst of Green Economic Growth |
| title_full | Greenfield Investment as a Catalyst of Green Economic Growth |
| title_fullStr | Greenfield Investment as a Catalyst of Green Economic Growth |
| title_full_unstemmed | Greenfield Investment as a Catalyst of Green Economic Growth |
| title_short | Greenfield Investment as a Catalyst of Green Economic Growth |
| title_sort | greenfield investment as a catalyst of green economic growth |
| topic | sustainable development green investment green growth green energy renewable energy |
| url | https://www.mdpi.com/1996-1073/16/5/2372 |
| work_keys_str_mv | AT aleksykwilinski greenfieldinvestmentasacatalystofgreeneconomicgrowth AT oleksiilyulyov greenfieldinvestmentasacatalystofgreeneconomicgrowth AT tetyanapimonenko greenfieldinvestmentasacatalystofgreeneconomicgrowth |