Is Green Always Beneficial? Assessing the True Impact of Greenfield Investments on Green Economy---Evidence from Selected Asean Countries

This study examines the impact of greenfield investments on the green economy across the ASEAN region based on a dataset from 2003 to 2020 Specifically, the analysis focuses on the relationship between greenfield investments and various economic indicators through models incorporating the Green Economy Index, which is constructed via Principal Component Analysis (PCA) from variables including GDP, GDP growth, and the Sustainable Development Index. The findings indicate that greenfield investments consistently correlate negatively with the green economy, suggesting that these investments may not inherently support sustainable economic outcomes in their current form. The study recommends that future policies in the ASEAN region should promote sustainability criteria for greenfield investments and encourage practices that integrate economic growth with environmental sustainability.