FDI-related spillovers of climate change mitigation technologies and greenhouse gas emissions in developing countries
Publication date
2026-03-31
Document type
Forschungsartikel
Author
Organisational unit
Scopus ID
Publisher
Taylor & Francis
Series or journal
Economics of Innovation and New Technology
ISSN
Peer-reviewed
✅
Part of the university bibliography
✅
Language
English
Keyword
developing countries
FDI-related spillovers
foreign climate change mitigation technologies
G7 countries
Greenhouse gas emissions
Abstract
This study examines the direct, indirect, and total effects of climate change mitigation technologies from developed countries–transferred via foreign direct investment (FDI)–on greenhouse gas (GHG) emissions in developing countries. Using the G7 countries as sources of green technology spillovers and analyzing a panel of 64 developing countries from 2009 to 2019, we find that, for our full sample, FDI-related spillovers of climate change mitigation technologies have a direct negative effect on GHG emissions in developing countries and an indirect positive effect through GDP growth. The magnitude of these effects depends on the share of FDI from G7 countries in a developing country's GDP. At low FDI shares, the total effect is positive but statistically insignificant, whereas at high FDI shares it becomes significantly negative. Our results suggest that FDI-related spillovers of climate change mitigation technologies offer a promising pathway to reconciling economic growth with climate protection.
Description
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
Version
Online first
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