Impact of Carbon Emissions, Renewable and Non-Renewable Energy Consumption on Inbound Cross-Border Mergers and Acquisition’s Investment Inflow

We investigate the impact of carbon emission, renewable, and non-renewable energy consumption of countries on India’s inbound cross-border mergers and acquisitions volume by using 769 country-pair-year observations gathered from Thomson Reuters EIKON database covering the study period from 1990 to 2020. The Tobit regression model results indicate that India is attracting lesser emitting countries; however, acquirers find it unattractive to invest through cross-border mergers and acquisitions as emission increases. Moreover, when countries’ renewable energy consumption is high, India receives less cross-border mergers and acquisitions volume. Furthermore, the non-renewable energy consumption of the India makes it attractive for cross-border mergers and acquisitions. This indicates that India is attracting lesser carbon-emitting countries to invest more through cross-border mergers and acquisitions and is potentially a pollution haven for countries looking for migration of carbon emissions, high renewable and non-renewable-energy consumption. We urge the policymakers and economists to strengthen the foreign direct investment policies to avoid culprit multinationals entering India to migrate carbon risk.