Sustainability and Economic Development

FDI’s Carbon-reducing Effect Spillover through Electricity Market Integration: Evidence from Southern Africa

Our study concentrates on the role of electricity market integration in facilitating the carbon-reducing effect of Foreign Direct Investment. Through an empirical study of the panel data from member states of the Southern Africa Power Pool (SAPP), we attempt to figure out the impacts of FDI inflows on carbon dioxide mitigation, as well as the spillover effects of electricity market integration. The research underscores the need for heightened collaborative efforts among countries participating in power pools and a surge in FDI to maximize environmental benefits.