The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies

Nawaz, Shahzada M. Naeem; Alvi, Shahzad; Akmal, Tanzila

doi:10.1007/s11356-021-14164-2

Cited by 28 publications

(6 citation statements)

References 81 publications

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“…This study gives evidence in support of the invalidity of the EKC and the validity of the PHH. These findings are consistent with Nawaz [33] for South Asia and Bakirtas and Cerin [56] for Mexico, Indonesia, Korea, Turkey, and Australia. The non-existence of the EKC in Sri Lanka could be due to the country's initial stage of development, the role of technological innovation, environmental and economic policies of the government [33].…”

Section: Resultssupporting

confidence: 86%

“…These findings are consistent with Nawaz [33] for South Asia and Bakirtas and Cerin [56] for Mexico, Indonesia, Korea, Turkey, and Australia. The non-existence of the EKC in Sri Lanka could be due to the country's initial stage of development, the role of technological innovation, environmental and economic policies of the government [33]. In addition, the impact of trade openness on CO 2 emissions in Sri Lanka is positive and supports the PHH.…”

Section: Resultssupporting

confidence: 86%

“…This confirms the existence of the PHH [28]. Recently, scholars tried to validate the PHH with the EKC hypothesis [29][30][31][32][33]. Liu et al [34] investigated the relationship between energy use, economic growth, trade openness, foreign direct investment, and ecological footprint in Pakistan to test the validity of the EKC hypothesis and the PHH.…”

Section: Ardl Bound Testing Approachmentioning

confidence: 75%

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Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?

Velayutham

2023

Sustainability

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This study explores the nexus among clean energy, economic growth, urbanization, trade openness, and carbon dioxide (CO2) emissions nexus in an emerging economy, Sri Lanka. An autoregressive distributed lag (ARDL) econometric technique and different diagnostic tests are used to investigate the linkages. The pairwise Graner causality approach is applied to investigate the causality direction. The estimated results have confirmed that clean energy and urbanization reduce carbon emissions, whereas trade openness induces carbon emissions in the long run in Sri Lanka. The findings revealed the non-existence of the environmental Kuznets curve (EKC) hypothesis in Sri Lanka. In contrast, the pollution haven hypothesis (PHH) exists between trade openness and carbon dioxide emissions in Sri Lanka. Regarding causal relationships, there is bi-directional causality between clean energy and urbanization. This study reports a unidirectional causality from clean energy to CO2 emissions, economic development to carbon emissions, urbanization and trade and CO2 emissions to urbanization and trade. Based on the above findings, this study recommends some policy recommendations.

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Section: Resultssupporting

confidence: 86%

Section: Resultssupporting

confidence: 86%

Section: Ardl Bound Testing Approachmentioning

confidence: 75%

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Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?

Velayutham

2023

Sustainability

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“…However, the movement of foreign direct investment (FDI) from developed to developing countries due to less strict environmental laws, cheap labor, and natural resources continue to pressure the climate change goals. Even though FDI flows to the developing countries lead to knowledge spillovers (Branstetter 2006 ; Xu and Sheng 2012 ; Paul and Feliciano-Cestero 2021 ), improved institutional quality in some regions in the host country (Long et al 2015 ), and economic growth (Osei and Kim 2020 ), FDI flows to these countries also increase environmental degradation in developing countries (see, e.g., Hanif et al 2019 , Nawaz et al 2021 ; among many others; see also below for further discussion).…”

Section: Introductionmentioning

confidence: 99%

How do foreign direct investment flows affect carbon emissions in BRICS countries? Revisiting the pollution haven hypothesis using bilateral FDI flows from OECD to BRICS countries

Apergis

Pinar

Ünlü

2022

Environ Sci Pollut Res

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Foreign direct investment (FDI) flows from developed to developing countries may increase carbon emissions in developing countries as developing countries are seen as pollution havens due to their lenient environmental regulations. On the other hand, FDI flows from the developed world may improve management practices and advanced technologies in developing countries, and an increase in FDI flows reduces carbon emissions. Most of the existing studies examine the relationship between FDI flows and carbon emissions by using aggregate FDI flows; however, this paper contributes to the literature by analyzing the impact of FDI flows on carbon emissions in Brazil, Russia, India, China, and South Africa (BRICS) between 1993 and 2012 using bilateral FDI flows from eleven OECD countries. According to our empirical results, from which OECD country FDI flows to BRICS countries matters for carbon emissions in BRICS countries. Our results confirm that FDI flows to BRICS countries from Denmark and the UK increase carbon emissions in BRICS countries, confirming the pollution haven hypothesis. On the other hand, FDI that flows from France, Germany, and Italy reduced carbon emissions in the BRICS countries, confirming the pollution halo effect. FDI flows from Austria, Finland, Japan, Netherlands, Portugal, and Switzerland have no significant impact on carbon emissions in BRICS countries. The BRICS countries should promote clean FDI flows by reducing environmental damages, and investing countries should be rated based on their environmental damage in the host countries.

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“…The validity of the pollution haven hypothesis in South Asian economies is tested. Research suggests that South Asian countries should focus on attracting clean foreign investment, while renewable energy production is critical to mitigating climate change [18]. (Salehnia et al [19], Mehmet [20], and Danish et al [21] found that the entry of FDI contributes to the reduction of environmental pollution in host countries.…”

Section: Pollution Halo Hypothesismentioning

confidence: 99%

Will China-Africa trade increase Africa’s carbon emissions?

Li,

Huang,

Wen

et al. 2023

PLoS ONE

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In order to explore whether China-Africa exchange will influence on the African environment. This paper selects four paths of China-Africa exchanges and explores the impact of each path on the African environment under the influence of different factors. We found that construction income and Africa’s exports to China will increase Africa’s carbon emissions. Foreign direct investment and China’s exports to Africa will lead to a reduction in carbon emissions in Africa. The resource moderation will reduce the significance of the environmental impact of each path on Africa. Based on the above conclusions, several suggestions are made on the policies and actual operations in the path of China-Africa exchanges.

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The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies

Cited by 28 publications

References 81 publications

Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?

Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?

How do foreign direct investment flows affect carbon emissions in BRICS countries? Revisiting the pollution haven hypothesis using bilateral FDI flows from OECD to BRICS countries

Will China-Africa trade increase Africa’s carbon emissions?

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