Operational behaviours of multinational corporations, renewable energy transition, and environmental sustainability in Africa: Does the level of natural resource rents matter?
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Tarih
2023
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Elsevier
Erişim Hakkı
info:eu-repo/semantics/embargoedAccess
Özet
The pollution haven hypothesis postulates a transfer of unsustainable production practices by multinational
corporations (MNCs) to their operational bases in developing economies with lax environmental regulations.
However, little is known about the role of natural resource rents in this relationship. To this end, the study
empirically investigates the interaction effects of the operational behaviours of multinational corporations
(MNCs) through foreign direct investment (FDI) and natural resource rents on environmental sustainability in 34
African countries over the period 1990 to 2017. Identifying two main pathways through which this can occur, we
specify two models with CO2 emissions and renewable energy as separate response variables. Employing both the
System Generalized Method of Moments (SYS-GMM) and Method of Moments Quantile regression (MM-QR)
estimation techniques, the empirical results suggest that natural resource rents play a vital moderating role in
determining how the operational behaviours of MNCs affect environmental sustainability. The interaction term
of foreign investment and natural resource rents correlates negatively and positively with environmental
pollution and renewable energy transition respectively. This suggests that at a certain level of natural resource
rents, the strength of the operational behaviours of MNCs to increase environmental degradation is reduced.
Furthermore, in countries with lower levels of natural resource rents, an increase in foreign investment de teriorates the environment, while in countries with lower levels of foreign investment, an increase in resource
rents degrades the environment. The dynamics follow the reverse direction when renewable energy is the
response variable. These findings, therefore, have policy implications for achieving Africa’s goal of carbon
neutrality.
Açıklama
Anahtar Kelimeler
Foreign investment, Renewable energy transition, Natural resources rents, Method of moments-quantile regression, African countries
Kaynak
Resources Policy
WoS Q Değeri
N/A
Scopus Q Değeri
N/A
Cilt
81
