The impact of carbon emissions on country risk: Evidence from the G7 economies.

This paper empirically investigates the effect of carbon emissions on sovereign risk? To answer this question, we use fixed effects model by using annual data from G7 advanced economies, which includes Canada, France, Germany, Italy, Japan, UK and USA, for the period from 1996 to 2014. We employ a novel extreme value theory to measure sovereign risk. The results indicate that climate change (carbon emissions) are likely to increase sovereign risk significantly. We also expand our analysis to some specific sectors, as some of the sectors emit more carbon than others. Specifically, we take top three polluting sectors namely: transportation, electricity and industry and show that they are more likely to increase the sovereign risk. Our results are robust to change in risk measures, estimation in differences and dynamic version of econometric models. Therefore, we have robust consideration that the carbon emissions significantly explain the sovereign risk.

Managing environmental challenges: Training as a solution to improve employee green performance.

Although environmental training program has become a vital solution to minimize environmental challenges, the existing literature has paid little attention to (1) the connection between environmental training and employee in-role green performance (EIGP), (2) the mediating role of employee environmental commitment in this environmental training-EIGP connection, and (3) the cultural perspective (Western and Local) influences on interrelationships between environmental training, EIGP, and employee environmental commitment. Drawing on the social exchange theory and cultural perspective, a quantitative study based on survey data collected from 301 respondents at hotels in Vietnam was employed to fill these research gaps. Findings reveal that environmental training program is as an important tool to drive EIGP directly, and this environmental training-EIGP relationship is significantly mediated by employee environmental commitment. Interestingly, the study indicates support for our prediction that the mediating role of employee environmental commitment on the environmental training-EIGP link is stronger at hotels managed by Western hospitality companies. However, unexpectedly, cultural influence does not moderate the effect of environmental training on EIGP. Other than theoretical contributions, our study carries important practical implications that can help organizations reduce their carbon footprint. Limitations and further research directions have also been discussed.

Role of financial development, economic growth & foreign direct investment in driving climate change: A case of emerging ASEAN.

In the context of remarkable economic growth and financial development in the emerging economies of East Asia, this paper attempts to shed light on the ecological consequences (CO2 emission) of economic growth, foreign direct investment and financial development in the selected ASEAN-5 economies. Drawing on the data from 1982 to 2014, we employed a set of quantitative techniques for panel data analysis which entailed Dynamic Ordinary Least Squares (DOLS) and Fully Modified OLS (FMOLS) approaches. Our findings indicate that financial and economic development, as well as FDI, have a statistically significant long-run co-integrating relationship with environmental degradation (CO2 emissions) in the under analysis economies. It showed that in ASEAN-5 countries, economic growth, financial development and FDI leads to an increase in environmental degradation. The quadratic term for economic growth showed a negative impact on environmental degradation i.e. Environmental Kuznets Curve (EKC). Our key findings manifest and emphasise the importance of appropriate policies for more inclusive economic and financial development and sustainable foreign direct investment which does not impede on the environment.