Pollution abatement cost savings and FDI inflows to polluting sectors in China

Di, Wenhua

doi:10.1017/s1355770x07003944

Cited by 48 publications

(26 citation statements)

References 21 publications

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“…They find that investments driven by community owned enterprises perform better environmentally than projects undertaken by state owned enterprises and private owned enterprises. Using a nested logit model, Di (2007) shows that FDI firms in polluting industries tend to locate in Chinese provinces with higher potential abatement costs savings adjusted for local environmental regulation. The study of Zheng et al (2010) with cross-city panel data in Chinese cities argues that FDI does not appear to facilitate the growth of pollution havens in China, since the marginal valuation for green amenities rises over time, and Chinese cities with higher levels of per-capita FDI flows have lower pollution levels.…”

Section: Literature Reviewmentioning

confidence: 99%

Foreign Direct Investment, Human Capital and Environmental Pollution in China

Lan

Kakinaka

Huang

2011

Environ Resource Econ

329

121

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By using provincial socioeconomic and environmental data, this paper examines the relationship between human capital, FDI and pollution emissions in China. The result shows the impact of FDI on pollution emission is highly dependent on the level of human capital. FDI is negatively associated with pollution emissions in provinces with the higher levels of human capital, whereas FDI is positively related to pollution emissions in provinces with the lower levels of human capital. This suggests that pollution haven hypothesis (PHH) holds only in those provinces with low human capital. This study also finds that the sign of FDI's effect on each pollutant' emission requires the different threshold level of human capital, which may help to reconcile the current conflicting PHH empirical evidences partially.

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Section: Literature Reviewmentioning

confidence: 99%

Foreign Direct Investment, Human Capital and Environmental Pollution in China

Lan

Kakinaka

Huang

2011

Environ Resource Econ

329

121

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“…6 In 2006, China's freshwater lakes and 40% its 7 major rivers were heavily polluted (SEPA, 2007). 7 Adapting the framework in Dean et al (2002aDean et al ( ,b, 2004Dean et al ( , 2005, Di (2007) provides some firm level evidence of a PH effect for investors in dirty industries. Unlike Dean et al, Di covers only 4 industries, uses US abatement costs to proxy pollution intensity, and does not test for differential responses by source country.…”

Section: Fdi and Environmental Stringency In Chinamentioning

confidence: 99%

Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China

Dean

Lovely

Wang

2009

Journal of Development Economics

481

143

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a b s t r a c tAt the center of the pollution haven debate is the claim that foreign investors from industrial countries are attracted to weak environment regulations in developing countries. Some recent location choice studies have found evidence of this attraction, but only for inward FDI in industrial countries. The few studies of inward FDI in developing countries have been hampered by weak measures of environmental stringency and by insufficient data to estimate variation in firm response by pollution intensity. This paper tests for pollution haven behavior by estimating the determinants of location choice for equity joint ventures (EJVs) in China. Beginning with a theoretical framework of firm production and abatement decisions, we derive and estimate a location choice model using data on a sample of EJV projects, Chinese effective levies on water pollution, and Chinese industrial pollution intensity. Results show EJVs in highly-polluting industries funded through Hong Kong, Macao, and Taiwan are attracted by weak environmental standards. In contrast, EJVs funded from nonethnically Chinese sources are not significantly attracted by weak standards, regardless of the pollution intensity of the industry. These findings are consistent with pollution haven behavior, but not by investors from high income countries and only in industries that are highly polluting. Further investigation into differences in technology between industrial and developing country investors might shed new light on this debate.Published by Elsevier B.V.

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“…He (2006He ( ), çalışmasında 1978He ( -2005 dönemini ele almış ve Kirlilik Cenneti hipotezinin geçerli olduğuna dair bulgular elde etmiştir. Benzer şekilde Di (2007), çalışmasında Kirlilik Cenneti hipotezinin geçerliliğini doğrulamıştır. Bir başka çalışmada ise Yanchun (2010Yanchun ( ), 1978Yanchun ( -2008 dönemini ele almıştır.…”

Section: Literatür İncelemesiunclassified

Doğrudan Yabancı Yatırımların CO2 Emisyonuna Etkisi: Kirlilik Hale Hipotezi mi Kirlilik Cenneti Hipotezi mi?

Zeren¹

2015

Journal of Yaşar University

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The relation between foreign direct investment and carbon emission together with globalized economic structure has become an important research area. Hence, the aim of this study is to investigate aspects of how increase in foreign direct investments is affecting carbon emission. In the application, the period 1970-2010 was examined and firstly, foreign direct investments are observed casual of carbon emission via linear and nonlinear causality tests. Secondly, long-term integration between these two variables is determined by cointegration test with two structural breaks. Lastly, the aspects of this relation are specified with the FMOLS and CCR cointegration estimators. As findings, the Pollution Halo Hypothesis which claims increase in foreign direct investments is parallel with decrease in carbon emission, is valid for United States, France and United Kingdom; on the other hand, the Pollution Haven Hypothesis which accepts these increased investments raise environment and air pollution, is valid only forCanada.

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Pollution abatement cost savings and FDI inflows to polluting sectors in China

Cited by 48 publications

References 21 publications

Foreign Direct Investment, Human Capital and Environmental Pollution in China

Foreign Direct Investment, Human Capital and Environmental Pollution in China

Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China

Doğrudan Yabancı Yatırımların CO2 Emisyonuna Etkisi: Kirlilik Hale Hipotezi mi Kirlilik Cenneti Hipotezi mi?

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