scholarly journals Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries

2021 ◽  
Vol 13 (22) ◽  
pp. 12651
Author(s):  
Wilman-Santiago Ochoa-Moreno ◽  
Byron Alejandro Quito ◽  
Carlos Andrés Moreno-Hurtado
Keyword(s):  
Co2 Emissions ◽  
Latin American ◽  
Environmental Kuznets Curve ◽  
Direct Investment ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Short Term ◽  
Middle Income ◽  
Pollution Haven ◽  
Latin American Countries

In this study we aim to test the effects of foreign direct investment (FDI) on carbon emissions (CO2) in 20 Latin American countries during the period of 1990–2018. Based on the atlas method of the World Bank, we divided the countries into three groups according to their real gross national income per capita: high-income, upper-middle-income and lower-middle-income countries. We used cointegration techniques and causality tests to evaluate the relationship between the variables. To assess the strength of the cointegration vector, we applied the dynamic ordinary least squares (DOLSs) model for individual countries and the dynamic panel ordinary least squares (PDOLSs) model for groups of countries. The results suggest that the entry of FDI into Latin American (LA) countries increases CO2 emissions, affecting the environmental quality. These findings disagree with the environmental Kuznets curve (EKC) hypothesis but, in contrast, they are in line with the pollution haven hypothesis (PHH). Moreover, we show evidence in long-term equilibrium relationship between FDI input and CO2 emissions, which is not the case for the short-term equilibrium. Some additional results suggest that FDI flows do not cause the CO2 emissions in LA countries. The empirical findings suggest policymakers to design policies to “the second-best theory”, targeting FDI flows to their economies to solve economic problems in the short term, but thereafter they may guarantee the reduction in environmental pollution, based on environmentally responsible FDI and stronger regulations. In other words, the transition from a pollution haven to the applicability of the environmental Kuznets curve (EKC). This study contributes with scarce empirical evidence for LA countries in this issue.

Inward and Outward Foreign Direct Investment and Inequality: Evidence from a Group of Middle-Income Countries

2016 ◽  
Vol 16 (3) ◽  
pp. 511-538 ◽  
Author(s):  
Chao-Hsi Huang ◽  
Kai-Fang Teng ◽  
Pan-Long Tsai
Keyword(s):  
Income Distribution ◽  
Transition Economies ◽  
Latin American ◽  
Direct Investment ◽  
Reference Group ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Middle Income ◽  
Middle Income Countries ◽  
Latin American Countries

Using panel data of a group of 39 middle-income countries over 1981–2006, this paper examines how globalization in general and inward and outward FDI in particular affects inequality. Depending on geographical region and economic system, each component of globalization affects inequality in three groups of countries in different ways: open to inward FDI tends to affect income distribution adversely in transition economies and Latin American countries, but marginally improves income distribution in countries of the reference group. In contrast, open to outward FDI is positively associated with inequality in the reference group whereas negatively associated with that of the other two groups of countries. Crucially, improvement in human capital appears to be the single most reliable way to reduce inequality.

scholarly journals Do Aging and Low Fertility Reduce Carbon Emissions in Korea? Evidence from IPAT Augmented EKC Analysis

2020 ◽  
Vol 17 (8) ◽  
pp. 2972 ◽  
Author(s):  
Jaehyeok Kim ◽  
Hyungwoo Lim ◽  
Ha-Hyun Jo
Keyword(s):  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Population Aging ◽  
The Elderly ◽  
Ordinary Least Squares ◽  
Low Fertility ◽  
Kuznets Curve ◽  
Long Run ◽  
Carbon Dioxide Co2 ◽  
Robustness Check

The purpose of this article is to empirically find the Environmental Kuznets Curve (EKC) relationship between income and carbon dioxide (CO2) emissions and to analyze the influence of population aging on such emissions. We utilize Korean regional panel data of 16 provinces during the period from 1998 to 2016. To account for the nonstationary time series in the panel, we employ a fully modified ordinary least squares (FMOLS) and estimate long-run elasticity. From the empirical results, we can find the nonlinear relationship between income and CO2 emissions. Additionally, we verify the fact that population aging reduces CO2 emissions. A 1% increase in the proportion of the elderly results in a 0.4% decrease in CO2 emissions. On the other hand, the younger population increases CO2 emissions. These results were in line with those of additional analysis on residential and transportation CO2 emissions, for the robustness check.

Do Remittances Attract Foreign Direct Investment? An Empirical Investigation

2014 ◽  
Vol 14 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Hem C. Basnet ◽  
Kamal P. Upadhyaya
Keyword(s):  
Foreign Direct Investment ◽  
Latin American ◽  
Direct Investment ◽  
Asia Pacific ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Negative Effect ◽  
Using Data ◽  
Latin American Countries

Remittances are a major source of household income in many Asian, African, and Latin American countries. Households spend a significant portion of remittances on health and education. Given that human capital is one of the primary determinants of foreign direct investment (FDI) inflow, this study develops a model in which remittances are one of several determinants of the observed variation in FDI. The model is estimated using data from a group of 35 middle-income countries from Latin America, Asia–Pacific, and Africa. The estimated results ascribe no significance to remittances in explaining cross-country variation in FDI. However, geographically-disaggregated estimated results do establish a positive effect for African countries, no significant effect for Latin American countries, and a negative effect for the Asia–Pacific region.

scholarly journals The Impact of Renewable Energy, Urbanization and Environmental Sustainability Ratings on the Environmental Kuznets Curve and the Pollution Haven Hypothesis

2021 ◽  
Vol 13 (24) ◽  
pp. 13747
Author(s):  
Chi-Hui Wang ◽  
Prasad Padmanabhan ◽  
Chia-Hsing Huang
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Co2 Emissions ◽  
Low Income ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Low Income Countries ◽  
Kuznets Curve ◽  
Middle Income ◽  
Per Capita

The impacts of renewable energy adoption and environmental sustainability ratings on the validity of the environmental Kuznets curve and the pollution haven hypothesis are examined using annual balanced panel data from 64 middle and low-income countries and spanning the 2005 –2014 period. We show that the GDP per capita/CO2 emissions per capita relationship is an inverse S curve for the full sample of low and middle-income countries and for each subsample. The renewable energy/CO2 emissions per capita relationship is an inverse N curve for the full and the middle-income samples, but a V curve for the low-income sample. The foreign direct investment net inflows/CO2 emissions per capita relationship is an N curve for the full and the middle-income samples, and a positive relationship in the low-income subsample. High levels of government environmental sustainability ratings in low-income countries with relatively higher incomes can attract foreign direct investment net inflows while reducing pollution. In contrast, middle-income countries with high environmental sustainability ratings can attract foreign direct investment net inflows only if they allow small increases in pollution.

scholarly journals Testing the Environmental Kuznets Curve Hypothesis in North America’s Free Trade Agreement (NAFTA) Countries

Energies ◽  
2020 ◽  
Vol 13 (12) ◽  
pp. 3104 ◽  
Author(s):  
Raul Arango Miranda ◽  
Robert Hausler ◽  
Rabindranarth Romero Lopez ◽  
Mathias Glaus ◽  
Jose Ramon Pasillas-Diaz
Keyword(s):  
Granger Causality ◽  
Co2 Emissions ◽  
Free Trade ◽  
Environmental Kuznets Curve ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Ekc Hypothesis

In force since 1994, the North American Free Trade Agreement (NAFTA) is still the most comprehensive agreement ever developed, conforming to the world’s largest trade market. However, the environmental impacts cannot be neglected, particularly greenhouse gas emissions. The environmental Kuznets curve (EKC) hypothesis is revisited, studying Canada, Mexico, and the U.S.A. in relation to carbon dioxide (CO2) emissions, gross domestic product (GDP), energy, and exergy consumption. Ordinary least squares, vector autoregression, and Granger causality tests are conducted. Additionally, exergy indicators and the human development index (HDI) are proposed. Results for Mexico and the U.S.A. describe similar and interesting outcomes. In the search of the environmental Kuznets curve (EKC), the EKC hypothesis is confirmed for Mexico and the U.S.A. However, for Canada, the EKC hypothesis does not stand. The Granger causality test displays the existence of a uni-directional causality running from CO2 emissions to economic growth; a similar behavior was observed while testing the for the exergetic control variables. The most intriguing Granger causal results are those from the U.S.A. A bidirectional relation was observed between exergy intensity and CO2 emissions. Moreover, the EKC curve was plotted by both variables. Furthermore, Mexico’s outcomes reveal that increasing renewable exergy share will decrease CO2 emissions. On the contrary, increasing HDI will grow CO2 emissions. Policy implications arise for NAFTA countries to minimize CO2 emissions by means of the growing renewable energy share. Exergy tools offer an appealing insight into energetic and environmental strategies.

scholarly journals Searching for an Environmental Kuznets Curve in Carbon Dioxide Pollutant in Latin American Countries

2009 ◽  
Vol 41 (1) ◽  
pp. 13-27 ◽  
Author(s):  
Biswo N. Poudel ◽  
Krishna P. Paudel ◽  
Keshav Bhattarai
Keyword(s):  
Carbon Dioxide ◽  
Latin American ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Specification Tests ◽  
Panel Model ◽  
Carbon Dioxide Co2 ◽  
Environmental Kuznets Curves ◽  
Latin American Countries

This study utilized a semiparametric panel model to estimate environmental Kuznets curves (EKC) for carbon dioxide (CO2) in 15 Latin American countries, using hitherto unused data on forestry acreage in each country. Results showed an N-shaped curve for the region; however, the shape of the curve is sensitive to the removal of some groups of countries. Specification tests support a semiparametric panel model over a parametric quadratic specification.

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.

Reformulating the tourism-extended environmental Kuznets curve: A quantile regression analysis under environmental legal conditions

2020 ◽  
pp. 135481662091255
Author(s):  
Natalia Porto ◽  
Matías Ciaschi
Keyword(s):  
Quantile Regression ◽  
Latin American ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Tourism Sector ◽  
Quantile Regression Analysis ◽  
Tourism Activity ◽  
Novel Approaches ◽  
Latin American Countries

This work aims to empirically study the environmental Kuznets curve (EKC) in a model that takes into account the tourism sector. We use two novel approaches in this framework: an own developed environmental legal index and an instrumental quantile regression methodology. Our study comprises 18 Latin American countries between 1995 and 2013. We have found that tourism activity causes carbon emissions increases but, because of the restrictions imposed by environmental regulations, further tourism activity can mitigate these adverse environmental effects, mainly in high-polluted countries. These results suggest a step forward in the tourism-extended EKC estimations: they indicate the need for analysis considering the heterogeneities in environmental conditions across countries and the role of environmental regulation within this framework.

scholarly journals Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3415
Author(s):  
Bartosz Jóźwik ◽  
Antonina-Victoria Gavryshkiv ◽  
Phouphet Kyophilavong ◽  
Lech Euzebiusz Gruszecki
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Central Europe ◽  
Environmental Kuznets Curve ◽  
European Countries ◽  
Kuznets Curve ◽  
The European Union ◽  
Ekc Hypothesis ◽  
Central European ◽  
Long Run

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.

scholarly journals Bootstrap ARDL Test on the Relationship among Trade, FDI and CO2 Emissions: Based on the Experience of BRICS Countries

2019 ◽  
Author(s):  
Fumei He ◽  
Ke-Chiun Chang ◽  
Min Li ◽  
Xueping Li ◽  
Fangjhy Li
Keyword(s):  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Export Trade ◽  
Short Term ◽  
Brics Countries ◽  
The Relationship ◽  
Cointegration Relationship

We used the Bootstrap ARDL method to test the relationship between the export trades, FDI and CO2 emissions of the BRICS countries. We found that China's foreign direct investment and the lag one period of CO2 emissions have a cointegration on exports. South Africa's foreign direct investment and CO2 emissions have a cointegration relationship with the lag one period of exports, and South Africa's the lag one period of exports and foreign direct investment have a cointegration relationship with the lag one period of CO2 emissions. But whether it is China or South Africa, these three variables have no causal relationship in the long-term. Among the variables of other BRICS countries, Russia is the only country showed degenerate case #1 in McNown et al. mentioned in their paper. When we examined short-term causality, we found that CO2 emissions and export trade showed a reverse causal relationship, while FDI and carbon emissions were not so obvious. Export trade has a positive causal relationship with FDI. Those variables are different from different situations and different countries.

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