THE IMPORTANCE OF INVESTMENT FOR THE GREEN ECONOMY IN COUNTRIES AT DIFFERENT LEVELS OF DEVELOPMENT

Abstract

Investment in renewable energy sources is gradually becoming the most popular investment in the world. Sustainable investment is an encouraged solution because it does no harm to nature. The aim of the study is to find out whether richer or less rich countries invest more in renewable energy sources. The richer a country is and attracts more foreign investment, the faster its economy grows. If a country is less rich, attracts less foreign investment, its economy grows slower. We found that investment in the green economy is following this trend as well. Countries invest in the green economy because they want to be either completely energy independent or become less dependent on other countries. It is important for the country's economy not only to invest in other countries, but also to attract foreign investment in order to strengthen the domestic economy. The high level of the country's economy is indicated by direct investment in foreign states. Economic development depends on the kind of investment. Economic growth can be predicted based on investment. Investment increases the productive potential of the economy. Net investment shows the country's economic situation. The economy is growing if the amount of total investment exceeds depreciation. Investment is very beneficial and important for the development and growth of the country's economy. All investments, including green investment, improve and increase the development and growth of the country's economy. Through the generated gross domestic product, investment affects the country's economy. Economic growth depends on foreign and domestic investment. The main problem of investing in renewable resources is the cost of technology: the higher the price, the longer the payback period is. Therefore, economically stronger countries can invest more in renewable energy sources. Economically stronger countries with favourable climate conditions invest more in renewable energy sources, while economically weaker countries with poorer climate conditions invest less in them. Economic growth depends on foreign and domestic investment The richer a country is and attracts more foreign investment, the faster its economy grows. If a country is less rich, attracts less foreign investment, its economy grows slower.