Knowledge Agora



Scientific Article details

Title The effect of foreign aid on carbon emissions in recipient countries: Evidence from China
ID_Doc 32518
Authors Wang, HJ; Wang, YM; Zhang, X; Zhang, C
Title The effect of foreign aid on carbon emissions in recipient countries: Evidence from China
Year 2024
Published
DOI 10.1016/j.techfore.2023.123104
Abstract Foreign aid is an essential tool in economic diplomacy tool, yet its significance in global environment governance often goes underestimated. Taking 118 countries that received Chinese foreign aid from 2000 to 2018 as the research objects, this study investigated the impact of foreign aid on the carbon emissions of recipient countries and the mechanism. Firstly, the present study found that Chinese foreign aid increased the overall carbon emission levels of recipient countries during the sample period, with each 1 % increase in Chinese foreign aid being followed by a 0.0148 % increase in the carbon emissions of recipient countries. Secondly, the improvement of the economic growth and technological innovation of recipient countries served a mediating role in the process of Chinese aid affecting the carbon emissions of recipient countries. Thirdly, the threshold test results indicate that Chinese foreign aid helps to reduce the carbon emission levels of recipient countries when their economic growth rates and technology innovation levels are low, noting that this emission reduction effect may weaken as the recipient countries' economic growth rates and technological innovation increase. The findings of this paper expand the literature on the functional theory and non-economic consequences of foreign aid. Moreover, they told significant theoretical and policy implications for promoting cleaner aid practices and fostering low-carbon, green growth in recipient countries.
Author Keywords Foreign aid; Carbon emissions; Climate change; Technological innovation; High-carbon industries
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Social Science Citation Index (SSCI)
EID WOS:001144101900001
WoS Category Business; Regional & Urban Planning
Research Area Business & Economics; Public Administration
PDF
Similar atricles
Scroll