Carbon emissions and business cycles

Khan, Akhtar S.; Knittel, Christopher R.; Μεταξόγλου, Κωνσταντίνος; Papineau, Maya

doi:10.1016/j.jmacro.2019.01.005

Cited by 49 publications

(19 citation statements)

References 39 publications

(56 reference statements)

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“…The index provides, for domestic investors as well as for the foreign ones, a clearer attribution of the reforms in different areas, which could serve the economic cycle and limit competition [25]. The potential for investment must be complemented by a sustainable approach for both the government and the companies (public or private), and sustainable indicators, such as the carbon emissions and their evolution, are significant for the concern for the environment [26].…”

Section: Introductionmentioning

confidence: 99%

Linking FDI and Sustainable Environment in EU Countries

2021

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The aim of this study is to emphasize the link between the foreign direct investments (FDIs) and the sustainable environment in EU countries. We also focus on investigating the influence of other factors related to business environment on FDIs, considering the investors’ sustainable choice for the host countries, grouped according to FTSE Russell criteria. Using panel methodology and applying Ordinary Least Squares (OLS) method of data analysis, the authors reached the conclusion that a better-rated business environment, with concern for sustainability, has more of a chance to attract larger sums of FDIs, mostly in the case of developed economies. This fact proves that the main advantage considered by a foreign investor in developed EU countries is represented by CO2 emissions (sustainable environment) and a good ease of doing business environment. The study highlights the factors that influence the decision of investing in developed countries, rather than in emerging and frontier ones. This paper contributes to the existing literature by identifying the group of countries which need a more sustainable approach to attract a large amount of FDIs, given that the inflow of FDIs is a crucial factor of economic growth, a possible source of innovation and technology, and a way to reduce poverty.

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Section: Introductionmentioning

confidence: 99%

Linking FDI and Sustainable Environment in EU Countries

2021

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“…Most broadly, our work is also related to the recent macro-finance literature focusing on the implications of temperature-shifts (and other climate change-related variables) on the business cycles and equity valuations (see, among others, Bansal, Kiku, & Ochoa, 2016;Donadelli, Jüppner, Riedel, & Schlag, 2017;Balvers, Du, & Zhao, 2017;Khan, Metaxoglou, Knittel, & Papineau, 2019;Colacito et al, 2019). In particular these studies have focused on the effects of rising temperatures on consumption, productivity and aggregate stock market returns.…”

Section: Related Literaturementioning

confidence: 99%

Tornado activity, house prices, and stock returns

Donadelli

Jüppner

Paradiso

et al. 2020

The North American Journal of Economics and Finance

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In this paper we investigate the effects of tornado activity on house prices and stock returns in the US. First, using geo-referenced and metropolitan statistical area (MSA)-level data, we find tornado activity to be responsible for a significant drop in house prices. Spillover tornado effects between adjacent MSAs are also detected. Furthermore, our granular analysis provides evidence of tornadoes having a negative impact on stock returns. However, only two sectors seem to contribute to such a negative effect (i.e., consumer discretionary and telecommunications). In a macro-analysis, which relies on aggregate data for the South, West, Midwest and Northeast US regions, we then show that tornado activity generates a significant drop in house prices only in the South and Midwest. In these regions, tornadoes are also responsible for a drop in income. Tornado activity is finally found to positively (negatively) affect stock returns in the Midwest (South). If different sectors are examined, a more heterogeneous picture emerges. "Tornadoes are among the most destructive natural events and occur most frequently in the United States."

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“…Our practical contribution enabled us to obtain the model parameters for comparing two periods even though one of them has limited number of data points. Secondly, our study includes 48 countries which emitted 79% of the world's CO2 emissions in 2017 whereas most of the existing literature focused on the CO2 emissions and their procyclicality in the US (Wang & Wang, 2019;Khan et al, 2019) and EU countries (Pilatowska, Geise, & Wlodarczyk, 2018) only.…”

Section: Introductionmentioning

confidence: 99%

Impact of International Environmental Agreements on Procyclicality of Carbon Dioxide Emissions and Business Cycles

Küçükefe

KANLI>²

2022

Fiscaoeconomia

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The relationship between cyclic components of carbon dioxide (CO2) emissions and gross domestic product (GDP) growth is procyclical for a typical economy. Potential effects of a policy decision on the environment require policymakers to consider the impact of GDP growth on CO2 emissions for a country. This paper investigates the changing dynamics of procyclicality of CO2 emissions with respect to GDP growth following the Kyoto protocol which represents a strong commitment for a green economy by the industrialized countries. We compare two time periods (1970-2005 and 2006-2017) before and after the Kyoto Protocol by calculating the Pearson correlation coefficients and using linear regression models for 48 countries which produced 79% of the world total CO2 emissions in 2017. Our study finds that the procyclicality of the CO2 emissions and GDP growth decreased in 29 countries and increased in 19 countries in the period 2006-2017 following the Kyoto Protocol. We extract the cyclical components by Hodrick-Prescot filter. We also build VAR models and compute impulse response functions, which agree with the statistical findings.

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Carbon emissions and business cycles

Cited by 49 publications

References 39 publications

Linking FDI and Sustainable Environment in EU Countries

Linking FDI and Sustainable Environment in EU Countries

Tornado activity, house prices, and stock returns

Impact of International Environmental Agreements on Procyclicality of Carbon Dioxide Emissions and Business Cycles

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