The relationship between CO2 and Foreign Direct Investment in the agriculture and fishing sector of OECD countries: Evidence and policy considerations

Abstract This work focuses on the relationship between Foreign Direct Investment (FDI) and the environment. More specifically, it investigates the impact FDI inflowing the "agriculture and fishing" sector of OECD countries exerts on Carbon dioxide (CO2) emissions level deriving from sectoral fuel combustion. To this end, a purpose-built dataset containing statistics for 30 OECD countries over 25 years (from 1981 to 2005) is analyzed through the econometric technique of panel data. Apart from other evidence, the result of the analysis shows the existence of negative relationships characterizing the technique (–0.0848), scale (−0.0036) and cumulative (–0.0044) effects of FDI on CO2. From an environmental-economic point of view, this outcome would mean that an increase of the considered type of FDI reduces the CO2 level. It might be concluded, therefore, that FDI plays a beneficial role in the environment. However, a more in-depth look at the quantitative aspect of the coefficients achieved and just mentioned would help us to highlight more appropriately the neutral role FDI has on the considered environmental feature. In terms of policy considerations, this evidence does not allow us to argue against those strategies aimed at enforcing the flow of FDI into the sector under our consideration

A Multidimensional Tourism Carrying Capacity Model: An Empirical Approach

It is often observed that tourism generates a negative impact on the environment of destination places, among which the depletion of the natural capital is the most evident. To avoid this, tourism development and management should be based on the recognition of the limits characterising a destination. The indicator of Tourism Carrying Capacity (TCC) can be particularly relevant to this purpose. In fact, it gives an idea of the threshold of tourists that can be accepted at a destination while considering the capacities of some components of the local tourism system. In this work, we approach a specific definition of TCC, and for its empirical measurement, we also develop a multidimensional model in the form of a mathematical programming application. Furthermore, we apply the model to some tourism destinations in the area of the Gargano National Park (South Italy), where evidence of unsustainable tourism management can be observed

Investigating the Relationship Between FDI and the Environment in OECD Countries: A Sectoral Approach

Over the last two or three decades increasing and ever accelerating trends of environmental degradation have been recorded and widely reported in a number of international scientific works. As is often claimed, this situation is particularly attributable to globalization and the widespread increase of economic activities. The recognition that FDI represents a relevant part of globalization raises various concerns. However, its environmental implications are not easy to identify and this gives rise to complex arguments and contradictory views. This work aims to give a modest contribution to the scientific reflection on the FDI-environment relationship and is structured as follows. The first chapter introduces the main aspects of FDI and identifies the links characterizing its relationship with the natural environment. The second chapter provides a literature review. The third chapter is entirely dedicated to the empirical analyses which attempt to go beyond what is done in the literature. In fact, in addition to a major interest in trade, a particular orientation to develop analyses on national aggregated data is generally observed. Our work, instead - and this might be perceived as its original contribution - investigates the mentioned relationship at the level of specific activity sectors. Through the use of the econometric technique of panel data, a purpose-built dataset is investigated to mainly observe the effect that FDI inflowing in the "agriculture and fishing", the "manufacturing" and the "transport and communication" sectors of the OECD countries generates on the level of some considered pollutants. More specifically, the analysis of the "agriculture and fishing" sector focuses on both the FDI-CH4 (over the period 1990-2005) and FDI-CO2 from the sectoral fuel combustion (over the period 1981-2005) relationships. The "manufacturing" and "transport and communication" sectors are analysed only on the basis of the FDI-CO2 from the sectoral fuel combustion relationship (over the period 1981-2005). Two final chapters are respectively dedicated to the concluding discussion and policy considerations of the work. The results of our analyses, expressed in terms of cumulative effects, show that when the investigation of the "agriculture and fishing" sector is made to observe the CH4-FDI relationship, the coefficient results equal to + 0.0427 + 0.0018 FDI, this showing the increase of Methane emission when FDI grows by 1%. When the "agriculture and fishing" sector is analysed in relation to the CO2-FDI relationship, the cumulative effect coefficient becomes equal to - 0.0848 - 0.0036 FDI, this representing the response of CO2 as a result of 1% growth of FDI. The cumulative effect coefficient for the "manufacturing" sector is equal to + 0.0058 + 0.0014 FDI which represents the increase of the sectoral CO2 from fuel combustion when FDI grows by 1%. Finally, the coefficient of the cumulative effect for the "transport and communication" sector is found equal to + 0.0027 + 0.0014 FDI, this representing the growth of the sectoral CO2 from fuel combustion as a result of a 1% increase of FDI. If the inflow of FDI in each sector is considered at the sample mean value, then for "agriculture and fishing" an actual cumulative impact of +0.0213 is observed for the CH4-FDI and another of -0.0436 for the CO2-FDI relationship. An actual cumulative impact equal to +0.0051 is observed for the CO2-FDI relationship in the "manufacturing" sector and another of +0.0022 for the CO2-FDI in the "transport and communication" sector (values in natural logarithm of CO2 in Mt). Apart from the interpretation of the algebraic signs, which would make us say that FDI is beneficial to the environment when the sign of the identified effect is negative and vice-versa, it is worth underlining how a closer look at the quantitative aspect of our results would allow us to highlight the nearly-zero value and the almost neutral role that FDI exerts on the considered environmental indicators. This is also confirmed by the very small and almost quantitatively insignificant results achieved from assessing the impact FDI exerts on the considered pollutants through GDP. With regard to the "agriculture and fishing" sector, the impact of FDI on CO2 through GDP cannot be identified due to the insignificant result achieved in the estimation of the CO2-GDP relationship. Apart from this, however, an outcome equal to -0.0003 is observed when the impact of FDI inflowing in the "agriculture and fishing" sector on CH4 is assessed through GDP (with FDI and GDP considered at their sample mean value respectively). Similarly, a result of +0.00002 is observed when assessing the impact of FDI on CO2 through GDP in the manufacturing sector and another of +0.0006 when the "transport and communication" sector is made the subject of attention (values in natural logarithm of CO2 in Mt)

The relationship between CO2 and foreign direct investment in the agriculture and fishing sector of OECD countries: evidence and policy considerations

This work focuses on the relationship between Foreign Direct Investment (FDI) and the environment. Morespecifically,it investigates the impact FDI inflowing the “agriculture and fishing” sector of OECD countries exerts on Carbondioxide (CO2) emissions level deriving from sectoral fuel combustion. To this end, a purpose-built data set containing statistics for 30 OECD countries over 25 years (from1981 to 2005) is analyzed through the econometric technique of panel data. Apart from other evidence, the result of the analysis shows the existence of negative relationships characterizing the technique (–0.0848), scale (−0.0036) and cumulative (–0.0044) effects of FDI on CO2. From an environmental-economic point of view, this outcome would mean that an increase of the considered type of FDI reduces the CO2 level. It might beconcluded, therefore, that FDI plays a beneficial role in the environment. However, a more in-depth look at the quantitative aspect of the coefficients achieved and just mentioned would help us to highlight more appropriately the neutral role FDI has on the considered environmental feature. In terms of policy considerations, this evidence does not allow us to argue against those strategies aimed at enforcing the flow of FDI into the sector under our consideration

Does good ESG lead to better financial performances by firms? Machine learning and logistic regression models of public enterprises in Europe.

The increasing awareness of climate change and human capital issues is shifting companies towards aspects other than traditional financial earnings. In particular, the changing behaviors towards sustainability issues of the global community and the availability of environmental, social and governance (ESG) indicators are attracting investors to socially responsible investment decisions. Furthermore, whereas the strategic importance of ESG metrics has been particularly studied for private enterprises, little attention have received public companies. To address this gap, the present work has three aims-1. To predict the accuracy of main financial indicators such as the expected Return of Equity (ROE) and Return of Assets (ROA) of public enterprises in Europe based on ESG indicators and other economic metrics; 2. To identify whether ESG initiatives affect the financial performance of public European enterprises; and 3. To discuss how ESG factors, based on the findings of aims #1 and #2, can contribute to the advancements of the current debate on Corporate Social Responsibility (CSR) policies and practices in public enterprises in Europe. To fulfil the above aims, we use a combined approach of machine learning (ML) techniques and inferential (i.e., ordered logistic regression) model. The former predicts the accuracy of ROE and ROA on several ESG and other economic metrics and fulfils aim #1. The latter is used to test whether any causal relationships between ESG investment decisions and ROA and ROE exist and, whether these relationships exist, to assess their magnitude. The inferential analysis fulfils aim #2. Main findings suggest that ML accurately predicts ROA and ROE and indicate, through the ordered logistic regression model, the existence of a positive relationship between ESG practices and the financial indicators. In addition, the existing relationship appears more evident when companies invest in environmental innovation, employment productivity and diversity and equal opportunity policies. As a result, to fulfil aim #3 useful policy insights are advised on these issues to strengthen CSR strategies and sustainable development practices in European public enterprises

How Resistant is the Agricultural Sector? Economic Resilience Exploited

The concept of resilience has wide acceptance in different scientific doctrines and fields, from ecology to disaster management. Nowadays this phenomenon is being more and more intensively exploited in economic sciences in an attempt to measure the ability of economic systems to quickly regenerate from different external shocks or even to avoid them as such. This research paper examines economic resilience of the agricultural sector (including industries) with the example of Lithuanian empirical data. In order to measure the economic resilience of the agricultural sector, the appropriate index was created including a new derivative indicator – volatility of revenues from the desired growth path. Expert interviews, statistical analysis and econometrical modelling were employed in our research. The results show the increasing value of economic resilience of the Lithuanian agricultural sector up to the year 2015, which can be attributed to the accession into the EU, after this year inclination towards more profitable, but considerably more risky export markets lowers the calculated parameter of economic resilience of the Lithuanian agricultural sector. Such a tendency questions the sustainability of economic resilience of the Lithuanian agricultural sector

The Economic Valuation of Ecosystem Services of Biodiversity Components in Protected Areas: A Review for a Framework of Analysis for the Gargano National Park

Protected areas play an important role in the conservation and protection of biodiversity of particular territories, especially of ecosystems that provide resources for living organisms, including human beings. Different studies highlight the importance of biodiversity and its associated benefits in terms of ecosystem services of protected areas. The economic assessment of ecosystem services and biodiversity becomes a viable solution to help the policy maker to make decisions on the environmental preservation of these areas according to the Agenda 2030 for Sustainable Development. Nonetheless, very few studies provide an economic evaluation of the benefits of protected areas. To advance the current debate on the economic evaluation of the benefits provided by protected areas, the present paper purposes an integrated approach. It presents an overview of main ecosystem services’ mapping techniques currently available to researchers and policy makers and offers a systematic review carried out for the period 2015–2020 at an international level. The main findings are particularly attractive for the Gargano National Park (GNP) in the south of Italy, which is recognised as being a biodiversity hot spot at global level. The current study provides useful guidance for the assessment of trade-offs, the support to policy makers, and the provision of efficient allocation of public resources for protected area

Indicazioni di policy per il turismo religioso in provincia di Foggia

This study is developed within the activity context run by the Tourism Observatory of the Economics Department of the University of Foggia. Through the use of a questionnaire it attempts to analyze the religious tourism phenomenon in the territory of the province of Foggia. A total number of three-hundred pilgrims (one-hundred for each specific site) was interviewed with the aim of understanding the main features characterizing the specific tourism demand related to the Sanctuaries of Incoronata, Monte Sant’Angelo and San Giovanni Rotondo. The study represents a first attempt to help the identification of some reorganizational strategies to pursue a better use of the cultural and spiritual resources existing at the local level