scholarly journals International trade, CO2 emissions, and re-examination of “Pollution Haven Hypothesis” in China

Author(s):  
Ran Wu ◽  
Tao Ma ◽  
Dongxu Chen ◽  
Wenxi Zhang
Author(s):  
Ritu Rana ◽  
Manoj Sharma

This study examines the causality relationships between FDI, economic growth (in terms of GDP) and the natural environment, in terms of CO2 emissions and energy consumption, along with two more variables of interest i.e., trade openness and technology gap in the context of India. The data used in the study is obtained from World Development Indicators (WDI) of the World Bank Group for the period 1980 to 2014. The study employed the dynamic multivariate Toda-Yamamoto (TY) approach that uses the modified Wald (MWALD) test. The results show that FDI is neither causing economic growth nor is it bridging the technology gap directly in India. The results also indicate the existence of a Pollution Haven Hypothesis in India as the FDI is causing environmental degradation, i.e. CO2 emissions and energy consumption. Also, FDI is, though not causing GDP directly, but is doing so indirectly through CO2 emissions validating the existence of Pollution Haven Hypothesis. FDI is causing trade openness in India, but that openness is again causing more FDI which is doing no good for India.


2021 ◽  
Author(s):  
Ran Wu ◽  
Tao Ma ◽  
Dongxu Chen ◽  
Wenxi Zhang

Abstract We use input–output analysis and Levinson’s structural decomposition method to measure China’s CO2 emissions under the no-trade hypothesis, to calculate how international trade affects China’s emissions. We also analyze the driving factors of the difference between hypothetical no-trade CO2 emissions and actual emissions and discuss the existence of “pollution haven hypothesis” (PHH) in China. The results show that (1) from 2000 to 2017, the hypothetical no-trade CO2 emissions are 2.43–14.67% lower than actual emissions. The scale effect is the main cause of this difference, while the composition effect fluctuates and has little impact. (2) Although exports make other economies’ CO2 emissions transfer to China, imports also help avoid China’s emissions from some carbon-intensive sectors. (3) International trade has little impact on the cleanliness of China’s industry composition. The no-trade industry composition is slightly cleaner than the actual one before 2010, after which trade improves the cleanliness of industry composition to a small extent. PHH is invalid for China in recent years, and results for most developing countries do not support PHH. (4) The relationship between no-trade effects and income per capita for all the economies does not also support PHH. Most economies reduce emissions, and their industry compositions are cleaner because of trade, regardless of their development degree.


Author(s):  
Oguzhan Aydemir ◽  
Feyyaz Zeren

In the literature, the impact of Foreign Direct Investment (FDI) on carbon dioxide (CO2) emissions is explained by two different hypotheses: Pollution Halo and Pollution Haven Hypothesis. While Pollution Halo hypothesis states that FDI provides advanced technology to countries and accordingly decreases CO2 emissions, Pollution Haven Hypothesis indicates that there is a positive relationship between FDI and CO2. In this regard, in this study, the impact of FDI on CO2 emissions in the selected 10 of G-20 countries in the period of 1970-2010 is investigated by using panel data analysis. The empirical findings show that panels have cross-section dependence and these two panels are stationary in different levels. Moreover, the existence of long term relationship between panels is found by using Durbin Hausmann panel cointegration test. The results of the study also show that while Pollution Halo Hypothesis is valid for USA, France and Argentina, Pollution Haven Hypothesis is valid for UK, Canada, Australia, South Africa, Italy, Mexico and Saudi Arabia.


2020 ◽  
Vol 67 (1) ◽  
pp. 93-109 ◽  
Author(s):  
Harun Terzi ◽  
Ugur Pata

The relationship between FDI inflows and carbon dioxide (CO2) emissions is still one of the most important topics among both environmentalists and economists. In this study, the Toda-Yamamoto augmented Granger causality method is applied to analyze the relationship between FDI inflows and CO2 emissions by employing annual data from 1974 to 2011 to determine whether the pollution haven hypothesis is valid in Turkey. The results of the causality test indicated that FDI inflows and CO2 emissions have a short-run univariate causal relationship, with positive causality moving from CO2 emissions to FDI inflows. One direction effect of CO2 emissions on FDI inflows supports the pollution haven hypothesis in Turkey.


Author(s):  
Ke Zhang ◽  
Xingwei Wang

With the development of trade liberalization, the pollutants emissions embodied in global trade are increasing. The pollution haven hypothesis caused by trade has aroused wide attention. The fragmentation of international production has reshaped trade patterns. The proportion of intermediate product trade in global trade is increasing. However, little has been done to study the pollution haven of different pollutants under different trade patterns. In this paper, major environmental pollutants CO2 (carbon dioxide), SO2 (sulfur dioxide), and NOx (nitrogen oxides) are selected as the research objects. This study investigated the global pollution haven phenomenon in 43 countries and 56 major industries from 2000 to 2014. Based on the MRIO model, the trade mode is divided into three specific patterns: final product trade, intermediate product trade in the last stage of production, and the trade related to the global value chain. The results show that trade liberalization could reduce global CO2, SO2, and NOx emissions, and intermediate product trade has a more significant emission reduction effect than final product trade. Trade’s impacts on each country are various, and the main drivers are also different. For example, the European Union avoids becoming a pollution haven mainly through the trade related to the global value chain. The suppressed emissions under this trade pattern are 71.8 Mt CO2, 2.2 Mt SO2, 2.2 Mt NOx. India avoids most pollutants emissions through intermediate product trade. China has become the most serious pollution haven through final product trade. The trade pattern could increase China 829.4 Mt CO2, 4.5 Mt SO2, 2.6 Mt NOx emissions in 2014.


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