scholarly journals An Empirical Analysis of the Relationship among Foreign Direct Investment, Gross Domestic Product, CO2 Emissions, Renewable Energy Contribution in the context of the Environmental Kuznets Curve and Pollution Haven Hypothesis Regarding Turkey

2020 ◽  
Vol 4 (1) ◽  
pp. 110
Author(s):  
Mehman Karimov
Keyword(s):  
Environmental Kuznets Curve ◽  
Direct Investment ◽  
Environmental Regulations ◽  
Developed Countries ◽  
Kuznets Curve ◽  
Pollution Haven Hypothesis ◽  
Energy Contribution ◽  
Pollution Haven ◽  
Turkish Economy ◽  
Per Capita

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.

The Environmental Kuznets Curve

2017 ◽  
Author(s):  
David I. Stern
Keyword(s):  
Economic Growth ◽  
Environmental Impacts ◽  
Environmental Kuznets Curve ◽  
Human Impacts ◽  
Developed Countries ◽  
Environmental Problems ◽  
Gdp Per Capita ◽  
Kuznets Curve ◽  
Per Capita ◽  
The Impact

The environmental Kuznets curve (EKC) is a hypothesized relationship between environmental degradation and GDP per capita. In the early stages of economic growth, pollution emissions and other human impacts on the environment increase, but beyond some level of GDP per capita (which varies for different indicators), the trend reverses, so that at high income levels, economic growth leads to environmental improvement. This implies that environmental impacts or emissions per capita are an inverted U-shaped function of GDP per capita. The EKC has been the dominant approach among economists to modeling ambient pollution concentrations and aggregate emissions since Grossman and Krueger introduced it in 1991 and is even found in introductory economics textbooks. Despite this, the EKC was criticized almost from the start on statistical and policy grounds, and debate continues. While concentrations and also emissions of some local pollutants, such as sulfur dioxide, have clearly declined in developed countries in recent decades, evidence for other pollutants, such as carbon dioxide, is much weaker. Initially, many understood the EKC to imply that environmental problems might be due to a lack of sufficient economic development, rather than the reverse, as was conventionally thought. This alarmed others because a simplistic policy prescription based on this idea, while perhaps addressing some issues like deforestation or local air pollution, could exacerbate environmental problems like climate change. Additionally, many of the econometric studies that supported the EKC were found to be statistically fragile. Some more recent research integrates the EKC with alternative approaches and finds that the relation between environmental impacts and development is subtler than the simple picture painted by the EKC. This research shows that usually, growth in the scale of the economy increases environmental impacts, all else held constant. However, the impact of growth might decline as countries get richer, and richer countries are likely to make more rapid progress in reducing environmental impacts. Finally, there is often convergence among countries, so that countries that have relatively high levels of impacts reduce them more quickly or increase them more slowly, all else held constant.

scholarly journals Emisi Karbon dan Produk Domestik Bruto: Investigasi Hipotesis Environmental Kuznets Curve (EKC) pada Negara Berpendapatan Menengah di Kawasan ASEAN

2020 ◽  
Vol 8 (3) ◽  
pp. 230-246
Author(s):  
Muhamad Ameer Noor ◽  
Putu Mahardika Adi Saputra
Keyword(s):  
Environmental Kuznets Curve ◽  
Carbon Emission ◽  
Time Series Data ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Series Data ◽  
Kuznets Curve ◽  
Middle Income ◽  
Trade Offs ◽  
Per Capita

Policymakers in the world are concerned with carbon emission due to the risk of global warming. Many studies on Environmental Kuznets Curve (EKC) consider carbon emission as a proxy of environmental degradation. This study aimed to investigate the existence of EKC and identify variations of relationships between carbon emissions and GDP per capita in ASEAN middle-income countries. The study was conducted on Indonesia, Thailand, Philippines, and Malaysia based on 1971-2014 time series data using a simultaneous model (2SLS) for each country. The main variables studied were GDP per capita, square of GDP per capita, and carbon emission supported by other variables as the controlling variables. Validation on EKC existence was determined by GDP and GDP squared influence on carbon emission, while variations of relationship between GDP and carbon emission were based on the result of simultaneous regressions. The results showed that the existence of the EKC could not be validated in all countries because energy and transportation policies in each country failed to reduce the emission. On the other hand, carbon emission had a positive unidirectional influence on GDP in all countries. The effect of carbon emission coefficient to GDP showed that Thailand ranked the highest in CO2 efficiency, followed by Indonesia, Philippines, and Malaysia. This study recommended that carbon emission reduction policies in the four countries should focus more to easier access to environmentally friendly technology from developed countries for ensuring trade-offs between the economy and environment.

A Panel Study of the Pollution-Haven Hypothesis

2009 ◽  
Vol 9 (1) ◽  
pp. 1850154 ◽  
Author(s):  
Raymond MacDermott
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Fixed Effects ◽  
Environmental Regulations ◽  
Panel Study ◽  
Pollution Haven Hypothesis ◽  
Data Set ◽  
Pollution Haven ◽  
Pollution Emissions

This paper tests the pollution-haven hypothesis. A fixed-effects variation of the gravity model is applied to panel data to investigate what relationship, if any, exists between environmental regulations and FDI. The data set focuses on bilateral flows of aggregated foreign direct investment between 26 OECD countries from 1982 to 1997. Use of pollution emissions as a proxy for environmental stringency shows evidence in support of the pollution-haven hypothesis. In other words, firms do seek out countries with weaker environmental regulations for production. In addition, FDI appears to fall with distance. Contrary to expectations, FDI is not influenced by interest rates, wages or GDP.

A meta-analysis of FDI and environmental regulations

2014 ◽  
Vol 20 (2) ◽  
pp. 185-208 ◽  
Author(s):  
Alief A. Rezza
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Research Design ◽  
Government Spending ◽  
Direct Investment ◽  
Environmental Regulations ◽  
Meta Analysis ◽  
Data Sets ◽  
Pollution Haven Hypothesis ◽  
Pollution Haven

AbstractPrevious authors have been unable to agree on whether environmental regulations hinder foreign direct investment (FDI). The empirical evidence in this domain remains inconclusive because of the contrasting results observed in the literature, owing to the differing characteristics of the data sets and models used in previous studies. The present study carries out a meta-analysis on a sample of published and unpublished papers on the so-called pollution haven hypothesis (PHH) in order to investigate whether certain aspects of research design affect the presented findings. The paper offers explanations for the mixed findings reported in the literature by suggesting that certain aspects of research design are crucial to explaining their significance. The PHH is more likely to be supported by studies that define FDI as the establishment of new plants and those that use government spending as a proxy for the strictness of environmental regulations. Moreover, focusing investigations on pollution-intensive industries or developing countries hardly increases the likelihood of achieving results that support the PHH.

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