An Assessment of the Role of Clean Energy Inclusion, Environmental Degradation, and Technological Innovation on Inflows of FDI: Evidence From SDG- 7

Abstract

This project paper scrutinizes the impact of clean energy inclusion, environmental deterioration, and technological innovation on foreign direct investment (FDI) inflows to achieve Sustainable Development Goal 7 (SDG-7). It finds complex relationships between the variables, like renewable energy consumption, revealing a pre-eminently positive influence on FDI inflows. Secondly, carbon dioxide (CO2) emissions have a bidirectional connection and indicate that high emissions perhaps deter investment in the long run. Finally, technological innovation exhibits powerful aptitudes & capabilities innovation to attract more foreign investors in host countries, positively influencing FDI. This research uses diverse econometric techniques, including cross-sectional dependency tests, panel cointegration tests, and cross-sectional autoregressive distributed lag (CS-ARDL) models from multiple countries. However, other factors are interconnected with these elements, emphasizing the need to incorporate strategies that encourage alleviating environmental degradation, accepting clean energy, and promoting technological development to attract foreign direct investment. This research boosts the knowledge of how the elements cooperate with SDG-7, as they contribute valuable information to the policymakers & investors as they work for sustainable economic advancement. This report provides policy recommendations highlighting green investments, reducing environmental effects, emissions controls, technology transfer, and innovation to gain sustainable development goals (SDG-7).