The Effect of Clean Energy Financial Investment on Carbon Reduction
Journal Title: Oblik i finansi - Year 2024, Vol 1, Issue 1
Abstract
Accounting and finance are intricately intertwined with the global quest for environmental sustainability by applying accounting and finance tools for carbon reduction initiatives. Clean energy financial investment is one of the many alternative tools through which accounting contributes to carbon reduction. Accordingly, this paper analysed the impact of separate and integrated clean energy investment alternatives on carbon reduction. Data on clean energy financial investment and carbon emission per capita were collected from the International Energy Agency (IEA) and Our World in Data archives, respectively. Data was analysed by using multiple pooled OLS to evaluate the impact of individual clean energy financial investments on carbon reduction and the impact of integrating the various clean energy financial investment alternatives on carbon reduction separately. Findings show that individual clean energy financial investments may not separately offer desired carbon reduction, hence, albeit some negative coefficients, individual clean investments showed no significant impact on carbon reduction. However, furthering the test by pooling all the clean energy financial investment alternatives shows a significant negative effect of clean energy financial investment on carbon reduction at a P-value of 0.05. This shows that an integration of different alternatives of clean energy financial investment may offer an enhanced reduction of carbon emission, which outweighs the effect of relying on a single clean energy investment alternative. The findings offer significant insight for policy makers’ future strategies towards a combination of multiple clean energy financial investments. Furthermore, the findings from this paper are a further testament that accounting and finance are connected with the global quest for environmental sustainability through the application of accounting and financial investment tools in conducting clean energy financial investment.
Authors and Affiliations
Collins C. Ngwakwe
Keywords
Related Articles
- EP ID EP734697
- DOI 10.33146/2307-9878-2024-1(103)-49-53
- Views 10
- Downloads 0
Облікова дефектологія: класифікація та діагностування
Система бухгалтерського обліку будь-якого підприємства функціонує в динамічних умовах, що спричиняють виникнення кризових ситуацій, бар’єрів у розвитку та різноманітних дефектів. При цьому рівень дефектності не визначаєт...
The Constitutional Role of Accounting in Ensuring the Implementation of Innovative Activities of the Enterprise
In post-Soviet countries, the perception of accounting as a service tool that performs a service function is still widespread. However, today accounting not only satisfies information needs but also ensures the formation...
Retrospective of the Accounting Profession Development: A Civilizational Approach
Over the last decade, several lists of professions that will disappear soon have been published. In this aspect, the rapid development and spread of innovation, and digitalization of management processes threaten the exi...
Формування облікової політики підприємства щодо обліку дебіторської заборгованості в системі розрахунків з покупцями
Зростання обсягів дебіторської заборгованості є однією з причин низької платоспроможності вітчизняних сільськогосподарських підприємств. Відтак важливе значення в управлінні фінансовими потоками підприємства має облікова...
Environment of Multifactorial Risk in the Financial System of Agribusiness Enterprises
The article deals with the theoretical and methodological provisions of modeling the environment of multifactorial risk in the financial system of enterprises agribusiness under the influence of macro and micro projectio...