Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages

This study examines the relationships between GDP per capita, CO2 emission, Renewable Energy Contribution (REC) and Foreign Direct Investment (FDI) and evaluates the Environmental Kuznets Curve (EKC) and Pollution Haven Hypothesis (PHH) for Turkey. The EKC theory says that with increase in income per capita the pollution also increases but in a turning point when nation become richer pollution starts to decrease according to stringency of environmental regulations and implying advanced green technologies due to requirement of nation. In another hand the PHH assume that due to stringency of environmental regulations and high taxes the production become more expensive in developed countries, thus those dirty industries shifts from environmentally stricter developed countries to poor regulated developing countries. The aim of this study to analyze and investigate: which theory (EKC or PHH) does exist in Turkish economy and does FDI has positive impact on sustainable development. The time series datasets (FDI, GDP, CO2 and REC) , those were obtained from World Bank database, which covers the time period 1970-2014 were utilized in employed statistical models as the ADF Unit Root, Philips – Perron, Johansen co-integration, and the Granger Causality tests, to accomplish the empirical part of the paper. Based on the empirical results, it was approved that there wasn`t existence of the EKC theory in Turkish economy. But according to obtained empirical results it was affirmed that there was the presence of the PHH theory in Turkish economy which means the FDI has a negative impact on sustainable development of Turkish economy. Thus, the developed countries with stricter environmental regulations (mostly from Europe) relocate their heavily polluted dirty industries to Turkish economy.

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An Analysis of the Impact of Clean and Non-clean Energy Consumption on Economic Growth and Carbon Emission: Evidence from PIMC Countries

10.21203/rs.3.rs-1103141/v1 ◽

2022 ◽

Author(s):

Arshad Ali ◽

Magdalena Radulescu ◽

Daniel Balsalobre Lorente ◽

Viet-Ngu (Vincent) Hoang

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Environmental Kuznets Curve ◽

Carbon Emission ◽

Clean Energy ◽

Kuznets Curve ◽

Pollution Haven Hypothesis ◽

Pollution Haven ◽

The Impact

Abstract This study empirically estimates the impact of clean and non-clean energy consumption on economic growth and carbon dioxide emissions within the framework of the environmental Kuznets curve and pollution haven hypothesis in the case of PIMC countries from 1980 to 2019. The results of the panel cointegration test proposed by Westerlund (2007) show a long-term equilibrium relationship among the variables of each designated model. The long-term elasticities of economic growth and carbon emission estimated by AMG, CCEMG and MG estimators indicate that both clean and non-clean energy consumption have a significant impact on economic growth, while carbon emission hinders growth. The results also reveal that economic growth, non-clean energy consumption and interaction between trade openness and non-clean energy consumption have a driving effect on carbon dioxide emission, however, clean energy consumption is found to reduce carbon emission. In addition, the analysis confirms the existence of the inverted U-shaped environmental Kuznets curve and pollution haven hypothesis in the panel of PIMC economies. Finally, there is a one-way causality from non-clean energy consumption to economic growth, but no such causation exists between clean energy consumption and economic growth. The objective of sustained economic growth with a safe environment may be achieved by encouraging clean energy consumption in the PIMC economies.

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Analysis of pollution haven hypothesis (PHH) and environmental Kuznets curve (EKC) in selected Association of South-East Asian Nations (ASEAN) countries

Review of Economics and Development Studies ◽

10.47067/reads.v6i1.186 ◽

2020 ◽

Vol 6 (1) ◽

pp. 83-95

Author(s):

Fouzia Latif Gill ◽

Abid Rashid Gill ◽

K. Kuperan Viswanathan ◽

Mohd Zaini B Abid Karim

Keyword(s):

Environmental Kuznets Curve ◽

Co2 Emission ◽

East Asian ◽

Least Square ◽

Kuznets Curve ◽

Pollution Haven Hypothesis ◽

Ordinary Least Square ◽

Pollution Haven ◽

Integration Approach ◽

Asean Countries

The Pollution Haven Hypothesis (PHH) claims that following the international trade, developing countries tend to specialize and export pollution-intensive goods to advanced countries. The current study examines the PHH claim in the context of exports of the six major ASEAN countries to Japan in the Environmental Kuznets Curve (EKC) framework for the period 1989-2017. The Fully Modified Ordinary Least Square (FMOLOS) panel co-integration approach has been employed to estimate the coefficients of the EKC model. The results reveal that the EKC does exist while the exports of pollution-intensive goods from the ASEAN to Japan increase the CO2 emission. The study concludes that world pollution cannot be curtailed unless advanced countries reduce the consumption of pollution-intensive goods. Therefore, an integrated well-devised global program is imperative to tackle the alarming issue of global warming, and advanced countries should lead this program.

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Environmental Policy Stringency, Technical Progress and Pollution Haven Hypothesis

Sustainability ◽

10.3390/su12093880 ◽

2020 ◽

Vol 12 (9) ◽

pp. 3880 ◽

Cited By ~ 6

Author(s):

Elkhan Richard Sadik-Zada ◽

Mattia Ferrari

Keyword(s):

Environmental Policy ◽

Common Ground ◽

Empirical Studies ◽

Variational Model ◽

Time Interval ◽

Kuznets Curve ◽

Pollution Haven Hypothesis ◽

Pollution Haven ◽

Long Run ◽

National Perspective

The present inquiry provides a common ground for the analysis of two strands of literature, the environmental Kuznets curve (EKC) and the pollution haven hypothesis (PHH). To this end, the study sets out a simple variational model, which identifies the structural composition of the economy and the level of economic development as the primary determinants of the magnitude of the domestic environmental degradation. The juxtaposition of the mentioned literature strands undermines the optimistic view that economic growth, in the long run, leads to the reduction of atmospheric pollution. To assess the empirical validity of the pollution haven conjecture, the study employs the OECD Environmental Policy Stringency Index and the refined data on carbon emissions embodied in imports for the dataset of 26 OECD countries in the time interval between 1995 and 2011. By employing pooled mean group (PMG) estimators, the study, for the first time, accounts for a number of issues mentioned in the literature as factors that confine the inferential power of existing empirical studies on the EKC. The strong and robust confirmation of the pollution haven conjecture indicates that at least in the context of global common pool resources, a purely national perspective of the EKC is not satisfactory.

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