Measuring Carbon Emissions of Foreign Direct Investment in Host Economies

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

No 2022/086, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Carbon emissions; foreign direct investment; input-output tables; A. carbon emissions; carbon intensity; emission intensity; FDI flow; carbon emission intensities of MNEs; Greenhouse gas emissions; Gross fixed investment; Exports; Manufacturing; Africa; Global (search for similar items in EconPapers)
Pages: 33
Date: 2022-05-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-fdg and nep-int
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