Potential of pension funds and insurance companies for investment in resources: Policies for sustainable transition

Bing Liu, Huimin Sun and Siqing Xiao

Resources Policy, 2024, vol. 89, issue C

Abstract: This study extensively explores the complex relationship between environmental investments made by pension funds and insurance companies and their influence on expenses associated with fossil fuels. Analyzing data from 2015 to 2020 across ten OECD economies, the research employs the Fully Modified OLS technique to extract meaningful insights. The results reveal that a 1% increase in environmental investments propels practices focused on energy conservation and increased efficiency by 0.49%, underscoring a dedicated commitment to sustainability. Additionally, a 1% increase in IT expenditures is associated with a 0.10% improvement in energy efficiency. Conversely, heightened green tax payments exhibit a negative correlation with energy usage, emphasizing the impact of regulatory incentives. To bolster sustainable investments, the paper advocates for robust ESG reporting, support for SMEs, the adoption of green corporate management practices, and improved access to green financial markets.

Keywords: Sustainable investment; Fossil fuels consumption; Sustainable transition; Pension fund and insurance companies; OECD (search for similar items in EconPapers)
JEL-codes: C33 F02 Q41 Q56 Q58 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013296

DOI: 10.1016/j.resourpol.2023.104618

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