The impact of green FDI on environmental quality in less developed countries: A case study of load capacity factor based on PCSE and FGLS techniques.

This paper examines the effect of green foreign direct investment (GFDI) on environmental quality (EQ) in 34 less-developed countries (LDCs) from 2003 to 2021. We analyze balanced panel data using Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE). Our findings reveal several vital insights: (1) GFDI helps improve EQ. (2) Environmental costs associated with economic growth are negative. (3) Trade openness positively influences EQ. (4) EQ is enhanced by institutional quality, energy use, and population expansion in the chosen countries. (5) The existence of a U-shaped curve was established. This is valuable to the relatively scanty literature on GFDI, especially in LDCs. To the best of our awareness, this study simultaneously employs the Load Capacity Factor (LCF) and Total Value of Announced Greenfield projects as proxies for environmental sustainability and GFDI for the first time. Secondly, incorporating PCSE and FGLS models in this context is an innovative methodological strategy. The present research work provides to the existing theoretical and empirical discussions on GFDI and EQ and has practical implications that inform policy-making.

Revisiting the relationship between carbon emission, renewable energy consumption, forestry, and agricultural financial development for China.

Globally, the use of modern technologies is increasing along with carbon emission due to the consumption of fossil fuels to operate modern technologies. Therefore, in this study, we aimed to investigate the relationship between carbon emission, renewable energy consumption, forestry, and agricultural value added per capita from 1998 to 2018. The auto-regressive distribution lag model was estimated for long-run and short-run correlation analysis. The results of this study revealed that carbon emission decreases owed increases in forest areas in the long and well as short-run nexus. Furthermore, in the short run, carbon emission decreases due to an increase in renewable energy consumption. In addition, the carbon emission was run in an upward direction parallel to agricultural financial development. Furthermore, this study confirmed that the unidirectional causality between variables by estimating the non-Granger causality test. Therefore, this study suggests that to combat carbon emissions with carbon emission, it is necessary to switch from nonrenewable energy to renewable energies and organic fertilizer consumption along with afforestation to make the climate free from carbon.