scholarly journals Environmental Policy Stringency, Technical Progress and Pollution Haven Hypothesis

2020 ◽  
Vol 12 (9) ◽  
pp. 3880 ◽  
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.

scholarly journals Investigating the existence of asymmetric Environment Kuznets Curve and Pollution-Haven Hypothesis in China: Fresh evidence from QARDL and Quantile Granger Causality

2021 ◽  
Author(s):  
Rabia Akram ◽  
Zeeshan Fareed ◽  
Gan Xiaoli ◽  
Bushra Zulfiqar ◽  
Farrukh Shahzad
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Carbon Emissions ◽  
Wald Test ◽  
Kuznets Curve ◽  
Significant Implication ◽  
Pollution Haven Hypothesis ◽  
Pollution Haven ◽  
Long Run ◽  
Environment Kuznets Curve

Abstract This study aims to analyze the asymmetric long-run relationship between economic growth (EG), Foreign Direct Investment (FDI) and carbon emissions (CO2) within the context of the Environment Kuznets curve (EKC) and the pollution haven hypothesis (PHH) in China. Employing the quarterly data from 1982Q1 to 2018Q4, we have used novel techniques to meet the stated objectives of our study, named Quantile ARDL and quantile Granger causality. The significant implication of this method is that it provides locational asymmetry. We find strong evidence of the EKC and PHH for China based on the empirical results of linear and nonlinear ARDL models. Similarly, findings of quantile Granger causality validate the bidirectional relationship among all variables in upper and lower quantiles. Moreover, the results of the Wald test confirm the asymmetric long-run relationship between FDI and carbon emissions (CO2). This study will be conducive for the policymakers to combat environmental contamination concerning economic growth and FDI inflow in China.

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.

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