Measuring Carbon Emissions of Foreign Direct Investment in Host Economies

Author/Editor:

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

Publication Date:

May 6, 2022

Electronic Access:

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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.

Series:

Working Paper No. 2022/086

Subject:

Frequency:

regular

English

Publication Date:

May 6, 2022

ISBN/ISSN:

9798400206863/1018-5941

Stock No:

WPIEA2022086

Pages:

33

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