Post by Abdoul Aziz Wane on Jan 23, 2012 4:32:47 GMT 4
Who’s Going Green and Why? Trends and Determinants of Green Investment
Luc Eyraud
International Monetary Fund (IMF)
Abdoul Aziz Wane
International Monetary Fund (IMF) - African Department
Changchang Zhang
affiliation not provided to SSRN
Benedict J. Clements
International Monetary Fund (IMF) - Expenditure Policy Division
December 2011
IMF Working Paper No. 11/296
Abstract:
This paper fills a gap in the macroeconomic literature on renewable sources of energy. It offers a definition of green investment and analyzes the trends and determinants of this investment over the last decade for 35 advanced and emerging countries. We use a new multi-country historical dataset and find that green investment has become a key driver of the energy sector and that its rapid growth is now mostly driven by China. Our econometric results suggest that green investment is boosted by economic growth, a sound financial system conducive to low interest rates, and high fuel prices. We also find that some policy interventions, such as the introduction of carbon pricing schemes, or “feed-in-tariffs,†which require use of “green†energy, have a positive and significant impact on green investment. Other interventions, such as biofuel support, do not appear to be associated with higher green investment.
papers.ssrn.com/sol3/Delivery.cfm/wp11296.pdf?abstractid=1974848&mirid=2
Luc Eyraud
International Monetary Fund (IMF)
Abdoul Aziz Wane
International Monetary Fund (IMF) - African Department
Changchang Zhang
affiliation not provided to SSRN
Benedict J. Clements
International Monetary Fund (IMF) - Expenditure Policy Division
December 2011
IMF Working Paper No. 11/296
Abstract:
This paper fills a gap in the macroeconomic literature on renewable sources of energy. It offers a definition of green investment and analyzes the trends and determinants of this investment over the last decade for 35 advanced and emerging countries. We use a new multi-country historical dataset and find that green investment has become a key driver of the energy sector and that its rapid growth is now mostly driven by China. Our econometric results suggest that green investment is boosted by economic growth, a sound financial system conducive to low interest rates, and high fuel prices. We also find that some policy interventions, such as the introduction of carbon pricing schemes, or “feed-in-tariffs,†which require use of “green†energy, have a positive and significant impact on green investment. Other interventions, such as biofuel support, do not appear to be associated with higher green investment.
papers.ssrn.com/sol3/Delivery.cfm/wp11296.pdf?abstractid=1974848&mirid=2