Who's Going Green and Why? Trends and Determinants of Green Investment
IMF Working Papers, December 1, 2011
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- Who's Going Green and Why? Trends and Determinants of Green Investment
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Bibliographic details
- Authors: Luc Eyraud, Changchang Zhang, Abdoul A Wane, Benedict J. Clements
- Published: December 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463927301.001
Overview and scope
- Title: Who's Going Green and Why? Trends and Determinants of Green Investment
- Authors: Luc Eyraud, Changchang Zhang, Abdoul A Wane, Benedict J. Clements
- Publication date: December 1, 2011
- Series: Working Paper No. 2011/296 (IMF Working Papers)
- Pages: 39
- Volume: 2011
- Issue: 296
- DOI: https://doi.org/10.5089/9781463927301.001
- Stock No: WPIEA2011296
- ISBN: 9781463927301
- ISSN: 1018-5941
- Geographical/sample coverage: 35 advanced and emerging countries (multi-country historical dataset)
Key findings and trends
- Green investment has become a key driver of the energy sector over the last decade.
- The rapid growth in green investment is now mostly driven by China.
- Econometric results identify factors that boost green investment:
- Economic growth
- A sound financial system conducive to low interest rates
- High fuel prices
- Policy interventions with measurable impacts:
- Introduction of carbon pricing schemes has a positive and significant impact on green investment.
- "Feed-in-tariffs," which require use of "green" energy, have a positive and significant impact on green investment.
- Biofuel support does not appear to be associated with higher green investment.
Research contribution
- Offers a definition of green investment.
- Provides a new multi-country historical dataset covering 35 countries.
- Fills a gap in the macroeconomic literature on renewable sources of energy.
- Uses econometric analysis to link macroeconomic conditions and policy interventions to green investment outcomes.
Subject classification and keywords
- Subject: Greenhouse gas emissions, Non-renewable resources, Renewable energy, Renewable resources, Technology
- Keywords: cost, GI, green energy, WP
Source: IMF Working Papers — "Who's Going Green and Why? Trends and Determinants of Green Investment" (December 1, 2011) by Luc Eyraud, Changchang Zhang, Abdoul A Wane, Benedict J. Clements.