DOI: https://doi.org/10.52903/wp2022323
EXPLORING COUNTRY CHARACTERISTICS THAT ENCOURAGE EMISSIONS REDUCTION
Panayiotis C. Andreou
Cyprus University of Technology and Durham University
Sofia Anyfantaki
Bank of Greece
Christos Cabolis
IMD Business School
Konstantinos Dellis
University of Piraeus
Abstract
We explore the relation between sound institutions favouring innovation and technology investment and firms’ emissions reduction. Even though emission abatement is achieved at the firm or plant level, we postulate that structural and institutional fac- tors underpinning green innovation, skills and technology adoption at the country level are of material importance. Advances in technology and infrastructure are the main drivers for the reduction of emissions and are, in turn, intrinsically linked to overall country characteristics. Sound institutions can act as enablers and accelerators for firms and industries in the green transition process, hence we find an attenuating effect on emissions conditional on firm attributes.
Keywords: Emissions; Institutions; Technological infrastructure; Skills; Innovation; EU ETS
JEL-Classification: E02; G32; Q55; Q56; Q58
Acknowledgements: The views expressed in this article are those of the authors and do not necessarily reflect those of the Bank of Greece or the Eurosystem.
Correspondence:
Sofia Anyfantaki
Bank of Greece,
21, El. Venizelos Ave,
10250, Athens, Greece
e-mail: sanyfantaki@bankofgreece.gr.