Impact of country governance mechanisms on carbon emissions performance of multinational entities.

This study investigates the impact of country governance mechanisms on carbon emissions performance of private sector organisations, using empirical evidence from 336 top multinational entities (MNEs) over a 15-year period. The results show that, at the aggregate level, Control of Corruption (b = -0.021, p < 0.01) and Voice & Accountability (b = -0.015, p < 0.05) are significantly and negatively associated with carbon emissions rate. While Political Stability (b = 0.007, p < 0.05) and Government Effectiveness (b = 0.018, p < 0.05) have significant positive impact on carbon emissions rate, the impact of Regulatory Quality and Rule of Law is negative but insignificant. Empirical evidence supports the conclusion that the existing institutional environment is not sufficient to deliver the net zero transition. There is a need for more coordination, strategic planning, and delivery monitoring in government institutions to achieve decarbonisation targets. The study contributes to knowledge within the context of the identified research gaps. First, the study adds to the limited literature on the impact of country governance on carbon emissions reduction, particularly with reference to scope 3 emissions. Second, with the sustainable development goals (SDGs) set to expire by 2030, the study provides empirical evidence on efforts governments of countries are making in achieving decarbonisation targets through improvement in country governance quality. Third, the study shows that the impact of the country governance on the carbon emissions performance of MNEs is contextual and varies across jurisdictions/geographical regions. Finally, the paper contributes to the debate on the actualisation of Agenda 2030, because presenting empirical evidence on the impact of country governance mechanisms on carbon emissions reduction-particularly scope 3 emissions-is an important discourse in the realisation of the SDGs.

The impact of climate disaster on international trade: Evidence from developed and developing countries.

A climate disaster can be devastating, but its challenges and losses provide some opportunities to other countries. Therefore, in this paper, we examine the impact of climate risk on international trade with a particular focus on developed and developing countries. Using a large sample of 160 countries between 2006 and 2019, we find that climate disaster is positively associated with high international trade. An increase in the climate disaster index will lead to an increase of about 5.9% in imports as a proportion of GDP. This is significant given that the mean of imports of the sample countries is 48%. Regarding the flow of trade, importation is likely to increase by about 6.7% and export to decrease by 0.65% after the occurrence of climate disasters in developing countries. Conversely, we did not find significant changes in imports and a weak association with exports for developed countries. We attribute this differential impact of climate disasters between developed and developing countries to the preparedness and risk mitigation mechanism in developed countries. The result suggests that the long-term effect of climate disasters increasing overall international trade is due to increasing imports in developing countries. Additional analyses demonstrate the robustness of these results to different model specifications and measurements of variables. Our results imply that climate change and its associated natural disasters offer more trade opportunities for developed countries than developing countries, highlighting the climate injustices between the high and low climate change contributors.

The impact of environmental cleanliness and cultural factors on child health in Africa.

Africa is a region with abundant natural resources, but the child mortality rate is higher. Despite World Health Organization (WHO) support, the region remained the highest with the number of child mortality rate. Given this fact, this study examines the role of environmental degradation, clean water source, and sanitation facilities on child mortality and life expectancy/longevity in Africa. To achieve this objective, we employ pooled regression and system generalized method of moment (S-GMM) on 33 African countries between 2000 and 2014. We found that environmental degradation is positively related to child mortality and life expectancy or longevity. However, clean water sources and sanitation facilities help to reduce the child mortality rate and help to improve life expectancy. Also, we found cultural norms improve child mortality and life expectancy. Our results imply that African countries are benefitting from cultural values, clean water sources, and sanitation facilities.

Determinants of green growth in developed and developing countries.

Considering the need for environmental sustainability while ensuring economic growth and development by 2030, this study uses data on 123 developed and developing countries to examine factors that influence green growth. The empirical results show that economic development positively influences green growth. However, trade openness is detrimental to green growth. Regarding energy-related factors, we find energy consumption negatively affecting green growth, but renewable energy consumption significantly improves green growth. In further analysis, we find that the influence of these factors differs between developed and developing countries. The result implies that countries at a different development level will require different strategies in achieving the Sustainable Development Goals in 2030. The results are robust to alternative identification strategies such as the System Generalised Method of Movement, which accounts for potential endogeneity.

The environmental footprint of China-Africa engagement: An analysis of the effect of China - Africa partnership on carbon emissions.

China has strategically engaged with African countries through different routes. However, the growing presence of China in Africa has attracted a lot of praise and criticism. As a leader in smart technology, China may fill the technological gaps in Africa, which improve the environment. Conversely, China may be exploiting natural resources and rapidly deteriorating the environment. Therefore, in this paper, we examine the impact of different routes of the China-Africa relationship on the environment. Using Fully Modified Ordinary Least Square (FMOLS) model on data from 50 African countries, we find that different Chinese activities affect the environment differently. We find a positive relationship between construction revenue and carbon emission, suggesting that China's construction activities negatively affect the environment. Similarly, export increases carbon emission and harms the environment. However, we find a negative relationship between importation from China and carbon emissions, implying a positive environmental footprint by China in Africa. In the case of foreign direct, the results show that foreign direct investment improves the environment, and the relationship is stronger in non-resource countries. Given that most exports from Africa are natural resources, our results imply that African non-resources-rich countries are likely to benefit from China's large investment in cleaner energy in the long-run, especially after the construction of the infrastructures. Our findings highlight the potential environmental risks associated with the different routes of China partnership with African countries.

Does environmental diplomacy reduce CO2 emissions? A panel group means analysis.

We examine the impact of environmental diplomacy on a country's carbon emission level. Specifically, we test if the signing of environmental treaties yielded positive responses in CO2 emission. We employ common correlated effects mean group models on panel data of 76 developed and developing countries for over 35 years. Our analysis indicates that environmental diplomacy reduces CO2 emissions for developing countries in the short run. However, the results of FMOLS in the long-run estimates indicate that developed and developing countries do not adhere to treaty requirements as CO2 emissions increases with more treaties. Overall, our results imply that the signing of environmental treaties is likely to be mere international diplomacy that yields no result on climate change. We suggest that countries should fulfill their obligation under treaties rather than engage in annual rituals of signing treaties.