Measuring Carbon Emissions of Foreign Direct Investment in Host Economies

By Maria Borga, Achille Pegoue, Gregory M Legoff, Alberto Sanchez Rodelgo, Dmitrii Entaltsev, Kenneth Egesa

May 6, 2022

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Format: Chicago

Maria Borga, Achille Pegoue, Gregory M Legoff, Alberto Sanchez Rodelgo, Dmitrii Entaltsev, and Kenneth Egesa. Measuring Carbon Emissions of Foreign Direct Investment in Host Economies, (USA: International Monetary Fund, 2022) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper presents estimates of the carbon emissions of FDI from capital formation funded by FDI and the production of foreign-controlled firms. The carbon intensity of capital formation financed by FDI has trended down, driven by reductions in the carbon intensity of electricity generation. Carbon emissions from the operations of foreign-controlled firms are greater than those from their capital formation. High emission intensities were accompanied by high export intensities in mining, transport, and manufacturing. Home country policies to incentivize firms to meet strict emissions standards in both their domestic and foreign operations could be important to reducing emissions globally.

Subject: Balance of payments, Economic sectors, Environment, Exports, Foreign direct investment, Greenhouse gas emissions, Gross fixed investment, International trade, Manufacturing, National accounts

Keywords: A. carbon emissions, Africa, Carbon emission intensities of MNEs, Carbon emissions, Carbon intensity, Emission intensity, Exports, FDI flow, Foreign direct investment, Global, Greenhouse gas emissions, Gross fixed investment, Input-output tables, Manufacturing

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2022/086
Stock No:

WPIEA2022086
ISBN:

9798400206863
ISSN:

1018-5941

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