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The pollution haven hypothesis is widely used to explain the predatory relocation of foreign investors to emerging markets. However, the long-term effect of the pollution haven hypothesis remains a mystery, given the natural evolution of environmental regulations. This study proposes that the likelihood of foreign divestment in the emerging market increases when the regional environmental regulatory pressure becomes more stringent. Empirical support is obtained through a Cox proportional hazard model of 402 international joint ventures established in China in 2000, whose foreign divestment status is traced until 2017. The findings support the karmic debt of the pollution haven hypothesis; that is, foreign investors' focus on avoiding environmental regulatory costs by relocating to emerging markets in the short run will backfire in the long run unless they bring something of value to the host market. [ABSTRACT FROM AUTHOR]

In the last few years, discussions and debates around environmental sustainability have become a key goal of the global agenda. This is because the latest studies and our direct experiences of the consequences of environmental degradation and climate change are showing that economic models need some urgent changes. The goal of this paper was to investigate the effects of foreign direct investment (FDI) flow on environmental sustainability globally. The balanced panel data of 100 countries from 2000 to 2020 were used for empirical analysis to understand the relationship between FDI inflow and environmental performance index (EPI) for countries with different income levels. The estimation is made using the two-step system GMM model as it gives more robust and efficient results in this study. The results of the dynamic panel model do not support the pollution haven hypothesis, i.e., FDI inflow was not found to have any statistically significant effect on EPI. The findings of the paper suggest that to improve environmental quality globally, it is important for governments to invest more in renewable energy projects as clean energy consumption can be one of the most efficient solutions for reducing the impact of climate change. Moreover, countries need to reduce the unemployment rate as it significantly improves the environmental quality according to our estimation results. [ABSTRACT FROM AUTHOR]

This paper aims to test the pollution haven hypothesis within the European Union (EU), especially among newcomer countries, through the participation in global value chains (GVCs). The study used a combination of multiregional input–output method and multilevel mixed econometric analysis to investigate the relationship between global value chain trade flows, foreign direct investment flows, energy consumption, and carbon emissions across countries, sectors, and time. The study tested both the "pollution haven" and "pollution halo" hypotheses and found a non-linear relationship between foreign capital flows and carbon emissions, which became less relevant after the economic integration process. The results suggest the existence of a pollution haven in Europe. Although Eastern economies still exhibit problematic issues in relation to pollution control, they have made significant progress in reducing their emissions intensity. The conclusions include some policy recommendations based on the main findings of the research. [ABSTRACT FROM AUTHOR]

One important and frequently raised issue about foreign direct investment (FDI) is its potentially environmental consequences. In recent years, as severe haze pollution has broken out worldwide, whether FDI inflows increase PM2.5 spillages in a country has sparked a new round of heated discussion. This study attempts to empirically investigate how FDI affects haze pollution in various countries, by employing a cross-country panel dataset during the period 2010–2017, and further to examine the interactive effect of environmental regulation and FDI in the FDI–pollution nexus. Based on a two-way fixed-effects model with robust standard errors, the estimation results show that FDI inflows significantly lead to an increase in PM2.5 exposure, therefore, confirming the validity of the Pollution Haven Hypothesis. Moreover, environmental regulation generally appears to be ineffective in directly reducing haze pollution but acts as an essential underlying mechanism in the relationship between FDI and haze pollution. Under the moderation of environmental regulation, the positive marginal effect of FDI on PM2.5 continues to decrease until it becomes negative. The findings suggest that countries, especially developing countries and emerging economies should consider a mix of policies to manage its inward FDI to achieve sustainable development in the post-financial crisis era. [ABSTRACT FROM AUTHOR]

It is useful to analyze the factors, polluting the livable environment, whose sustainability and protection are vital to all living things, and to take the necessary precautions promptly. Within this scope, the effects of foreign trade and investments on environmental pollution in BRICMT (Brazil, Russia, India, China, Mexico, and Turkey) countries were analyzed with the Fourier Kwiatkowski–Phillips–Schmidt–Shin (KPSS) stationarity test, Fourier Bootstrap augumented autoregressive distributive lag (AARDL) method, and Fourier Bootstrap Toda-Yamamoto causality test for the period 1980–2021 in this study. According to the findings, the pollution haven hypothesis is valid since increasing exports and foreign investment in China increased environmental pollution both in the short term and the long term. While environmental pollution increased in China, Brazil, Mexico, and Turkey with increasing imports, it decreased in Russia. The short-term impact of imports on rising environmental pollution is also valid for Brazil. Since foreign investment increases environmental pollution in Brazil and Mexico in the long run, the pollution haven hypothesis is valid in these countries. In Russia and Mexico, where there are findings that foreign investment reduces environmental pollution in the short term, the pollution halo hypothesis is valid in the short run. According to the Fourier Bootstrap Toda-Yamamoto causality test results, it was determined that there is causality from exports and imports to environmental pollution in China and India and from foreign investment to environmental pollution in Russia and Brazil. [ABSTRACT FROM AUTHOR]

In the last two decades, the surge in carbon emissions has escalated environmental damage and is a major concern globally. Recognized as a significant threat to humanity, unchecked environmental degradation can potentially hinder the achievement of sustainable development. As a result, accurate monitoring of carbon emissions becomes imperative for formulating effective climate policies. Taking into consideration, this study has taken the newly developed consumption-based carbon emissions measure to study the pollution haven hypothesis and examine the link between Greenfield Investment (GFI) inflows to host nations and their environmental impact for 85 developing countries from 1990 to 2020. The results show a positive correlation between Greenfield investment and Consumption-based Carbon Dioxide Emissions (CCO2) in sampled nations. Similarly, energy usage and export damage the environment because developing countries rely on conventional and old methods of energy usage. The results were further analyzed for low, lower middle, and upper middle income countries as well. The subsample outcome shows that Greenfield investment has a more damaged environment in low income countries as compared to lower middle and upper middle income countries. These insights underscore the urgency for developing countries to adopt environmentally conscious policies to attract international investors. It also emphasizes the need for stringent regulations aimed at curbing environmental pollution and complying with the Sustainable Development Goals (SDGs). Similarly, low and lower middle income countries to attract Greenfield investment, may also focus more on strict environmental pollution policies. Industries must be shifted from conventional energy methods to renewable energy sources. Sustainable Development Goals; 7, 12, and 13 can be achieved by host countries, alluring investors to invest in terms of Greenfield in renewable energy resources, which would be used in automobile transportation, to shift industries from conventional energy resources to renewable energy resources. The same Greenfield investment would also be used in bringing efficient machinery for more production in industries with minimal environmental pollution.

ABSTRACTOur study provides fresh insights into FDI's impact on carbon emissions across 51 African nations. Analysing data from 1990 to 2021, we use ARDL estimates and wavelet coherence analysis. While ARDL shows insignificant cointegration for most countries, wavelet coherence reveals: (i) 17 countries with a positive FDI-emissions link, (ii) 16 countries with a negative association, and (iii) 18 countries with ‘sign switching’ nonlinear dynamics. With no clear regional patterns, our main policy implication stresses the need for aligning regional efforts, like AfCFTA, with tailored country-specific strategies to guide capital flows towards cleaner industries. We advocate for industry-level FDI data in Africa to pinpoint sectors needing monitoring for greener production. On the global policymaking level, we assert that FDI cannot significantly address climate justice for most African countries.

This study documents the first large‐scale empirical evidence on the effects of differences in countries' environmental sustainability (ES) on cross‐border merger and acquisition (M&A) activity. Using 34,088 cross‐border mergers across 44 countries, we find that greater ES differences between acquirer and target countries stimulate the intensity of cross‐border mergers. The acquirer firms experience higher cumulative abnormal returns around merger announcements and pay higher merger premiums. Consistent with the pollution haven hypothesis, results on value effect are more pronounced for M&A deals in highly polluting industries such as petroleum, transportation and mining. The results are robust to a battery of robustness tests. [ABSTRACT FROM AUTHOR]

This study aims to examine the effects of per capita income, foreign direct investment (FDI) and primary energy consumption (BET) on the load capacity factor (LCF) within the framework of the load capacity curve (LCC) hypothesis for the Turkish economy. Additionally, the validity of the LCC, pollution a haven, and pollution halo hypotheses in Turkey is examined. For this purpose, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests and Autoregressive Distributed Lag (ARDL) bounds test method are applied using annual data for the period 1973-2022. The study concludes that there is no U-shaped relationship between per capita income and environmental quality in Turkey and therefore the LCC hypothesis is not valid. On the other hand, FDI has a negative impact on environmental quality in Turkey and the pollution haven hypothesis is valid. Environmental quality declines when BET grows, according to the negative relationship between BET and LCF, which is one of the model's control variables. Based on the study's findings, Turkey should switch from using fossil fuels to renewable energy sources, increase the activity of government oversight and regulation processes, and develop policies to raise the environmental consciousness of businesses and households in both the production and consumption processes. [ABSTRACT FROM AUTHOR]

Copyright of Journal of the Institute of Social Sciences Cankiri Karatekin University / Çankırı Karatekin Üniversitesi Sosyal Bilimler Enstitüsü Dergisi is the property of Cankiri Karatekin University, Institute of Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Increasing awareness of environmental problems in the world has contributed to the formation of strict environmental rules, especially in developed countries. However, many developing countries have kept their environmental rules relatively flexible because of economic concerns. This situation causes industries that damage the human-nature relationship and cause environmental problems to shift from developed countries to developing countries and these countries become pollution havens. The main purpose of this study is to analyze and test the validity of trade openness on carbon emissions (CO2) in MINT countries (Mexico, Indonesia, Nigeria and Türkiye), which have come to the fore in the world economy in recent years, and to test pollution haven and pollution halo hypotheses, which are hypotheses about environmental pollution in these countries. The study was analyzed using time series data from 1960-2021. ARDL (Auto Regressive Distributed Lag) bounds test approach was used for co-integration analysis between variables. The causality relationship of the variables was analyzed with the Breitung-Candelon frequency domain method, and finally, OLS and FMOLS methods were used for parameter estimation. According to the parameter results; it is concluded that the pollution haven hypothesis is valid in MINT countries. [ABSTRACT FROM AUTHOR]

This study analyzes the determinants of carbon dioxide (CO2) emissions, ecological footprint, and load capacity factor for the first time by applying the Fourier quantile causality test to data for the period 1975q1–2018q4 for Thailand. In this context, the study investigates the validity of the pollution haven hypothesis (PHH) by comprehensively examining the effects of foreign direct investment, renewable energy, import, export, natural resources rent, and income on environmental quality. The findings of the study show that the validity of the PHH varies depending on the environmental indicators, because while the PHH is valid for the CO2 and the load capacity factor, it is not valid for the ecological footprint. Moreover, renewable energy is the only element that can increase the environmental quality. All other variables have a negative effect on the load capacity factor, which worsens the environmental quality. The results of the study suggest that the Thai government should take measures to regulate natural resources rent and foreign capital inflows by considering environmental concerns and promoting renewable resources. [ABSTRACT FROM AUTHOR]

This paper critically addresses the need for a unified global climate policy, as opposed to region-specific emission trading systems, with a primary aim to contribute valuable insights to the ongoing discourse. Focused on the aluminum, cement, and iron and steel industries outlined in the EU's Carbon Border Adjustment Mechanism (CBAM) proposal, our comprehensive analysis using gravity model for trade, centers on testing the validity of the Pollution Haven Hypothesis and Porter Hypothesis. Drawing on data from 10 major EU economies and 19 OECD partners across continents, our study demonstrates that carbon leakage predominantly occurs through trade channels, wherein countries import carbon-intensive products from less regulated nations. Our findings substantiate the Pollution Haven Hypothesis, revealing unintended pollution havens resulting from stringent environmental regulations, leading to carbon leakage through trade or production relocation. In contrast, supporting the Porter Hypothesis, our research underscores how stringent environmental policies can drive innovation within polluting countries, obviating the need for relocation or product imports. By substantiating both hypotheses, our paper advocates for a globally uniform climate policy and emphasizes the potential drawbacks of asymmetrical approaches. The central aim is to contribute to the understanding of how such policies may inadvertently contribute to trade-induced leakage, undermining the positive impact of local systems on a global scale. In light of ambitious climate targets, our study underscores the urgency for synchronized global efforts, reinforcing the call for consistent policies to effectively address the challenges of climate change. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Business Science (JOBS) / İşletme Bilimi Dergisi (JOBS) is the property of Journal of Business Science / Isletme Bilimi Dergisi (JOBS) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates whether Somalia’s forward integration into global value chains (GVCs) sets it up as a pollution haven, while controlling for the effects of gross domestic product, renewable energy, urban population and trade openness. Annual time-series data set for the period 1992-2018 is analyzed via dynamic least squares regression analysis. The empirical results show that a percentage rise in the domestic value added of Somalia’s exports causes an increase of 0.274% in CO2 emissions. The study outcome therefore reveals that forward integration into global value chains significantly aggravates environmental pollution in the country. This is in confirmation of the study hypothesis that Somalia may be serving as a pollution haven because of the relatively lax environmental policies that permit the inflow of pollution-intensive foreign direct investments. It may also be due to the dominance of primary commodities in its exports which places it at the beginning of the GVC spectrum. A number of policy recommendations are provided.

This study investigates whether Somalia's forward integration into global value chains (GVCs) sets it up as a pollution haven, while controlling for the effects of gross domestic product, renewable energy, urban population and trade openness. Annual time-series data set for the period 1992-2018 is analyzed via dynamic least squares regression analysis. The empirical results show that a percentage rise in the domestic value added of Somalia's exports causes an increase of 0.274% in CO2 emissions. The study outcome therefore reveals that forward integration into global value chains significantly aggravates environmental pollution in the country. This is in confirmation of the study hypothesis that Somalia may be serving as a pollution haven because of the relatively lax environmental policies that permit the inflow of pollution-intensive foreign direct investments. It may also be due to the dominance of primary commodities in its exports which places it at the beginning of the GVC spectrum. A number of policy recommendations are provided. [ABSTRACT FROM AUTHOR]

Since the 1980s, Turkey has experienced a significant increase in both foreign direct investment (FDI) and its ecological footprint (EFP). While FDI is widely acknowledged as a pivotal driver of economic growth, its impact on environmental degradation is multifaceted and debated. Moreover, a country's institutional framework plays a key role in shaping this relationship. Yet, the influence of institutional structures on the FDI-environment nexus is often neglected in current literature. In this study, we investigate the environmental implications of FDI in Turkey from 1984 to 2018, employing time series analysis with a Fourier extension and accounting for institutional quality. Fourier function models give more effective results in modeling structural breaks. We first use Fourier techniques to assess the unit root and cointegration relationship. Upon establishing cointegration, we employ the DOLS estimator, extended with Fourier terms, to determine the long-term coefficients. We then assess the causal relationship between the variables using the Fourier causality test. Our findings indicate that while FDI exacerbates environmental degradation (supporting the pollution haven hypothesis), the interaction term of FDI-institutional quality mitigates this degradation (supporting the pollution halo hypothesis). Given these empirical findings, this study suggests that strengthening Turkey's institutional quality has the potential to amplify the environmental advantages of FDI, alongside its economic benefits. [ABSTRACT FROM AUTHOR]

Despite their economic success, most developing economies have yet to accomplish environmental sustainability. In contrast, these economies will not be able to preserve their trade and industry development if they do not preserve the substance level of the natural environment. In this view, the main purpose of this study is to explore the effect of the natural resources and institutional quality on carbon emissions during globalization mode using two-stage least square and panel threshold methods for a global panel of 73 developing nations from 1990 to 2018. This study also executes these empirical models for three sub-panel regions: Asia, Africa, and Latin America. The study findings suggest that natural resources, globalization, institutional quality, and human capital adversely impact carbon dioxide emission, while foreign investment and energy utilization can increase emission levels. In this respect, the panel threshold test finds that developing economies with natural resources below a threshold of 3.0315 points could increase environmental pollution. This study highlights the moderation effect between institutional quality and natural resources on carbon emissions. The other study findings show the presence of both the environmental Kuznets curve and pollution haven hypothesis for all countries. Further, robustness tests conform to our typical results. This study finding has policy implications for policymakers, and governments in the mentioned countries and regions. [ABSTRACT FROM AUTHOR]

This article examines the relationship between foreign direct investment, economic growth, natural resources, urbanization, biomass energy usage, and ecological footprint in 87 middle-income countries using data spanning 1990 to 2017. The Environmental Kuznets Curve hypothesis (EKC), the Renewable Energy-EKC, and the Pollution Haven Hypothesis (PHH) were tested by employing the Augmented mean group and Dumitrescu-Hurlin causality test. The empirical results show the inverted U-shaped link between economic growth and ecological footprint that demonstrates the existence of the EKC hypothesis. The empirical findings support the PHH since increasing foreign direct investment is the cause of the increased ecological footprint in middle-income countries. The urbanization process and natural resources put much strain on the environment's long-term viability. Furthermore, the findings demonstrated an inverted U-shaped association between biomass energy usage and economic growth, confirming the Renewable Energy-EKC. According to the findings, urbanization and foreign direct investment are crucial determinants of biomass energy usage. These results urge governments to offer comprehensive economic and energy strategies for the sustainability of the ecosystem and to meet the SDG targets. [Display omitted] [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

[Display omitted] • Panel data analysis is performed for 14 emerging European nations from 1995 to 2020. • Significant cross-sectional dependency exists within the data set. • Technological innovations and renewable energy reduce ecological footprint levels. • Financial development and non-renewable energy boost environmental pollution levels. • Pollution heaven hypothesis exists in the region for long-run. • SDGs-oriented policy framework is suggested. Economic progress has tended to influence the procedures of industrialization, which has augmented the assessment of exploited renewable energy-intensive resources through the appliance of technology. Exhaustive deployment of these renewable energy-intensive resources through technological innovation, financial development, foreign direct investment (FDI), and non-renewable and alternative energy can have a significant influence on the environment. In view of this concern, this research scrutinizes the effect of technological innovations, financial development, renewable and non-renewable energy, and FDI inflows, on ecological footprint in the case of 14 developing European Union economies. To do this, panel data for these countries from 1995 to 2020 are used. Due to the presence of cross-sectional dependency and slope heterogeneity, this research utilizes a battery of second-generation panel econometric tests, namely the Augmented Mean Group (AMG), and Common Correlated Effects Mean Group (CCEMG) estimators to discover the emphasized association. From the estimated evidence, renewable energy and technological innovation both mitigate the level of environmental degradation while financial development, non-renewable energy use and FDI contribute to the increase of environmental degradation in the long-run. Based on estimated evidences, these emerging European nations are enjoined to practice clean technology development without concession for ecological eminence in the selected countries. Finally, several vital policy/strategies suggestions are proposed from the bases of empirical evidence to promote financial development, green technological innovations, resources of renewable energy use, and foreign direct investment. [ABSTRACT FROM AUTHOR]

The relationship between air freight and environmental resource depletion is a widely explored area in different economic settings. There, however, is limited work available in the mediation of carbon pricing between air freight and environmental resource depletion, which is the focus of this study in the context of Saudi Arabia. This study aims to examine the role of carbon pricing in the relationship among air freight, foreign direct investment inflows, economic growth, and natural resource depletion in Saudi Arabia by using time series data from 1970 to 2017. The study employed a nonlinear autoregressive distributed lag model to find the short-term and long-term relationship between the variables. The results reveal that in the short term, the negative shocks of air freight exhausted natural resources, while in the long term, both the positive and negative shocks of air freight drain the country's environmental resources. The study verified the inverted U-shaped relationship between initial economic growth and natural resource depletion in the short term, while this result disappeared in the long term. There is a positive relationship between foreign direct investment inflows and natural resource depletion to support the "pollution haven" hypothesis in the short term. In the long term, carbon pricing advances the natural resource market to support the country's environmental sustainability agenda. There is a high need to formulate sustainable air freight policies to mitigate the negative environmental concerns in the country. [ABSTRACT FROM AUTHOR]

The study examines the relationship between CO 2 emissions, trade openness, GDP growth and foreign direct investment (FDI) in Romania. The research aims to provide empirical evidence for either the pollution haven hypothesis (PHH) or the pollution halo effect (PHE). The pollution haven hypothesis suggests that countries with weaker environmental regulations and lower environmental quality are more attractive to FDI, while the pollution halo effect posits that countries with high levels of environmental protection and quality can generate positive spillover effects for FDI. The findings suggest a significant relationship between CO 2 emissions, GDP growth and FDI inflows, with GDP growth having a greater effect on FDI than CO 2 emissions. GDP growth has a causal effect on CO 2 emissions, while CO 2 emissions have a causal effect on FDI. These findings have important policy implications, as they highlight the interplay between economic growth, environmental degradation, and foreign investment. Policies aimed at reducing emissions must be comprehensive and coordinated in order to achieve significant emissions reductions and strike a balance between economic growth and environmental protection. [ABSTRACT FROM AUTHOR]

This paper empirically evaluates the impact of environment stringency policy, business regulations, policy and economic uncertainty, and real GDP per capita on foreign direct investment (FDI) inflows by employing the autoregressive distributed lag approach and using data from 2000 to 2015. Specifically, we focus on two groups of countries with different economic development, the Group of Seven (G7) and the BRICS countries, and the composite indices of business and environmental regulations and policy-induced uncertainty, along with real gross domestic capital (GDP) per capita, were selected to reflect the multidimensionality of the settings in the selected countries. Our results indicate that only the effect of real GDP per capita turned out to be homogenous and statistically significant across different income groups and time horizons. Findings also show that more friendly business regulations significantly encourage FDI inflows in the long run, but there is a bottom line. When regulations are already at a low level, as is the case with G7 countries, further liberalization would adversely affect FDI inflows. Furthermore, more stringent environmental regulations have a marginally adverse effect on FDI inflows only in the long run. At the same time, they weakly support the pollution haven hypothesis. The impact of policy-induced uncertainty on investment is adverse but largely nonsignificant in the short run. It appears that cross-border investments follow a pattern of the safe-haven effect to avoid uncertainty in the long run. [ABSTRACT FROM AUTHOR]

China and Brazil are the world's leading exporter and importer of agrochemicals respectively. We combine quantitative and qualitative methods to analyze global-local interactions in the spatial restructuring of China's agrochemical industry in relation to a 2006 agrochemical import-acceleration policy in Brazil. We synthesize global political ecology and evolutionary economic geography (EEG) research on environmental regulations, technological upgrading, and the spatial transformations of China's pollution-intensive industries, discussing arguments that the Pollution Haven Hypothesis (PHH) and Porter Hypothesis (PH) co-exist due to firm heterogeneity. While existing studies conceptualize heterogeneity in terms of firm size, regional hub (cluster) effect, and local government intervention, this study adds global-local interactions as dimension of firm heterogeneity – distinguishing firms with weak and strong international linkages. We show the import-acceleration policy in Brazil contributed to the de-concentration of agrochemical production towards western China (confirming the PHH). Yet increasingly strict environmental regulations in China curtailed de-concentration after 2010, when well-established firms and new entrants with strong international linkages consolidated exports to Brazil, while new firms with weaker international linkages exited this market (confirming the PH). This co-existence of PHH and PH due to firm-level heterogeneity of global-local interactions illustrates a theoretical synthesis we call an evolutionary political economic geography (EPEG).

Abstract This paper investigates the influence of environmental regulations on outward foreign direct investment (OFDI). We first develop a simple model to show that an increase in emission tax in the domestic market induces firm‐level foreign direct investment (FDI) activities. We next take advantage of China's 11th Five‐Year Plan as a quasi‐natural experiment, which imposed different pollution reduction targets across provinces, and examine its impact on firm‐level FDI activities. Our results indicate that more stringent environmental regulations encourage firm‐level FDI participation. Furthermore, (1) firms are more likely to carry out FDI in developing countries instead of developed ones; (2) Compared with distribution‐oriented FDI, firms are more likely to engage in production‐oriented FDI. All results remain robust after controlling for possible policy endogeneity, missing variables, and expectation effect issues, which provides positive support for the pollution haven hypothesis.

• Without environmental regulation, Triple-B always relocates polluting industries. • Environmental regulation reduces the probability of relocation from 75 to 50%. • Higher customs duties reduce willingness of investors to take on investment risk. • Energy transition reduces the perceived level of punishment for polluters. • The current formula for applying carbon taxes must consider energy transition. Developed and developing countries have made remarkable efforts to address climate action. However, some developing countries have hung on to their comparative advantage in the polluting production of goods. By applying game theory, specifically a dynamic game with incomplete information, this study examines how the transfer of polluting industries can be discouraged by increasing associated costs through carbon taxes and custom duties on polluting imports. 24 developed countries and 18 developing countries were under analysis. The main findings suggest that energy transition could play a vital role in preventing this transfer. To attract clean FDI and boost energy transition, a stricter regulatory framework through levying carbon taxes and customs duties on polluting imports is recommended as an unstable regulatory framework may deter Foreign Direct Investment but also other desirable types of investment. Policymakers should reformulate how carbon taxes are applied to maintain their deterrent effect of reducing carbon emissions. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between foreign direct investment (FDI) inflows and CO2 emissions in Korea, applying the autoregressive distributed lag model. Specifically, we test the impact of FDI on CO2 emissions based on Korea's level of economic growth, using yearly data from 1971 to 2015. Our results show that, in the long run, FDI inflows positively affect CO2 emissions. However, the absolute size of the positive effect decreases with an increase in income. Eventually, the effect of FDI inflows changes from positive to negative, increasing the GDP per capita, in the long run. Thus, while the pollution haven hypothesis is satisfied at a lower income level, the pollution halo hypothesis becomes applicable at a higher income level. For Korea, the optimal policy strategy at the current income level, is to maximize FDI inflows. Our results also imply that a policy promoting FDI inflows to developed countries, is beneficial both economically and environmentally. Meanwhile, policymakers in developing countries should adopt a balanced policy for FDI inflows, considering their negative effects on the environment and positive effects on economic growth. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) is known to be beneficial because of the positive externalities it generates in the recipient economy, whether in developed or developing countries. With a view to achieving the Sustainable Development Goals (SDGs), West African countries are investing in attracting foreign investors, as evidenced by the upsurge in FDI flows observed over the past two decades and the reforms and attractiveness policies put in place. In West Africa, this FDI, which is mainly directed towards the natural resource extraction sectors, has consequences for the quality of the environment. This paper focuses on analyzing the effect of FDI on environmental quality in 13 West African countries over the period 2000–2020. This research uses a panel quantile regression with nonadditive fixed effect. The main results obtained indicate a negative effect of FDI on environmental quality reflecting the existence of the pollution haven hypothesis in the area. In addition, we find evidence of the U shape of the environmental Kuznets curve (EKC), invalidating the environmental Kuznets curve (EKC) hypothesis. West African governments should implement green investment and financing strategies and encourage the use of new green technologies and clean energy to improve environmental quality. [ABSTRACT FROM AUTHOR]

The aim of this study is to test the environment Kuznets curve (EKC) and pollution haven (PH) hypotheses in Sub-Saharan Africa (SSA). An important methodological point that has been over-looked by many studies is that environmental quality is not only correlated in time but also in space. For this purpose, the study applies spatial panel econometric analysis using a balanced panel of 35 SSA nations from 2002 to 2015 to examine the EKC and PH hypotheses. Both spatial interdependence and individual heterogeneity are accounted for through the application of the spatial Durbin model (SDM) so as to avoid potential bias and inefficiencies in parameter estimates. As proxies for environmental quality, panel data aggregates on carbon dioxide (CO2) emissions and the depletion of natural resources are utilised. The findings offer proof for the EKC theory about the depletion of natural resources in SSA. The EKC theory, however, does not apply to CO2 emissions. Moreover, the study finds that the positive scale effect of trade outweighs the negative technique effect of trade, which indicates that trade liberalisation has a negative effect on both environmental quality indices. This discovery supports the PH theory. The study also demonstrates positive spatial spill-over for natural resource depletion between neighbouring countries and negative spatial spill-over for carbon dioxide emission between close countries. [ABSTRACT FROM AUTHOR]

Each economic factor generates both positive and negative externalities regarding environmental quality. Owing to this, the current study aims to explore the impacts of various economic variables on the environmental quality of the Gulf Cooperation Council (GCC) region. By sampling the 24 years (1996–2019) financial statistics of six GCC region countries, we investigate the impact of economic growth, foreign investment, trade volume, tourism investment and revenue, and electricity production on CO2 emissions. The empirical analysis is based upon dynamic least square and fully modified ordinary least square model due to the existence of cointegration. Following the results, economic growth, foreign investment, tourism investment, electricity production, and population density have a positive impact, while trade volume and banking development have a negative impact on the volume of CO2 emissions. The results support the pollution haven hypothesis in the GCC region and have many policies for environmental economists regarding the protection of the natural environment in the long run. In parallel to economic growth, the policy officials from the GCC region should focus on environmental sustainability. They should exert more effort for developing sustainable economic growth policies. The current analysis offers new insights regarding the dynamic role of various economic factors in establishing the CO2 emission volume in the GCC region. [ABSTRACT FROM AUTHOR]

This paper provides a comprehensive analysis of the nexus between economic growth and environmental degradation, with a specific focus on carbon dioxide (CO _2 ) emissions. It leverages a dataset spanning from 1991 to 2021, encompassing all 12 member nations of the Shanghai Cooperation Organization (SCO). The investigation includes a wide array of statistical examinations, such as stationarity tests, cross-section dependence, and co-integration analysis. The Johansen Fisher Panel co-integration test is employed to reveal long-term correlations between the variables. Furthermore, the paper adopts the Dumitrescu and Hurlin panel causality model, which accommodates variations in causal relationships across different countries. Additionally, the study analyses the asymmetric impact of GDP on carbon emissions across various quantiles using quantile regression. The findings of this research yield valuable insights, highlighting a significant positive correlation between GDP and CO _2 emissions, suggesting that higher income levels are associated with greater pollution. However, the paper also illuminates more intricate scenarios, such as those characterized by inverted U-shaped and N-shaped Environmental Kuznets Curve (EKC) patterns, revealed through DOLS estimations. These estimations consider FDI, inflation, and industrialization as control variables. This research delves into the Pollution Haven Hypothesis and examines the interaction effects of FDI with other considered variables. These insights contribute to a deeper understanding of the complex dynamics between economic growth and environmental impact within the SCO member nations.

To mitigate carbon emissions studies have incorporated trade and energy as determinants of emissions in the environmental Kuznets curve model. These studies mostly focused on the overall trade without regard to goods trade that is more polluting. To this end, this study used a panel of African countries and investigate the role of goods trade and energy in generating carbon emissions. We utilized random coefficients and the generalised method of moment. Our findings confirmed the existence of the environmental Kuznets curve hypothesis. Findings further indicate that trade increases emissions and there exists evidence of non-linear nexus between trade and emissions. The composition effect increases emissions but the effect is not robust to different estimates. Energy increases emissions, and the indirect effect of trade through energy revealed no evidence that trade has allowed Africa the use of an energy-efficient technique of production which reduces carbon emissions. Findings also confirmed the existence of income and factor abundance pollution haven hypothesis. Therefore, trade and energy should be considered in emissions mitigation policy.

This paper investigates the relationship between CO2 emissions, energy consumption, economic growth, and foreign direct investment for a sample of Asia-Pacific Economic Cooperation Countries (APEC) countries from 1981:Q1 to 2021:Q1 employing panel data methodology. We identify cross-sectional dependence and hence utilize the cross-sectional augmented Dickey-Fuller panel unit root test for appropriate estimation. The cointegration test developed by Westerlund (2008) reveals a long-run equilibrium between CO2 emissions, energy consumption, economic growth, and foreign direct investment. Long-run parameter estimates based on Common Correlated Effect Mean Group indicate that an increase in FDI inflows has a negative impact on air quality, supporting the pollution haven hypothesis. The cointegration test results also show that the impact of Gross Domestic Product (GDP) on CO2 emissions varies by country in the estimation sample. In contrast to the mixed evidence on the effects of other variables, the increase in energy consumption is positively and significantly affecting CO2 emissions in all APEC countries. Emirmahmutoglu and Kose Econ Model 28:870-876, (2011)'s panel causality test results show a bidirectional relationship between FDI and CO2 emissions in Japan. Furthermore, there is a bidirectional causal relationship between GDP and energy consumption in Australia, China, Japan, and Singapore. Overall, empirical evidence suggests that APEC countries should adhere to strict regulations and invest in environmental-friendly clean technologies to attract foreign direct investment. [ABSTRACT FROM AUTHOR]

Since turning carbon neutral is regarded as a major macroeconomic agenda worldwide, this study examines whether financial globalization and good governance can help Brazil, Russia, India, China, South Africa, and Turkey in achieving carbon neutrality. Considering the period of analysis from 2000 to 2020 and utilizing robust econometric methods, it is observed that the environmental consequences vary across different components of financial globalization. In particular, the results validate the pollution haven hypothesis by confirming the carbon emission-boosting effect of de facto financial globalization indicators. In contrast, the pollution halo effect hypothesis is verified by the finding of the carbon emission-abating effect of de jure financial globalization indicators. Besides, promoting good governance is evidenced to impose carbon emission-mitigating impact in the long-run. The findings also authenticate the existence of the Environmental Kuznets Curve (EKC) hypothesis for the emerging countries of concern. Finally, for both the short and long runs, it is found that the non-renewable to renewable energy transition contributes to lower discharges of carbon dioxide, while urbanization results in the amplification of the carbon emission figures. Considering these critically important findings, it is necessary for these countries to impose restrictions on the influx of unclean foreign direct investment, facilitate and ease the investment process for foreign investors for investing in environment-friendly projects, promote good governance, and adopt green economic growth and sustainable urbanization policies by developing their respective renewable energy sectors. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This paper re-examines the pollution haven hypothesis (PHH) by taking environmental regulation in ambient regions as a critical determinant concurrent with own regulation. Exploiting the Two Control Zones policy in China as a quasi-natural experiment, we find that both the curbing effect of the local environmental regulation and the spillover effect of ambient regions affect high-polluting foreign direct investment (FDI) location. Moreover, reallocated FDI results in redistributing instead of reducing pollutant emissions. Our evidence enriched by spatial spillover primarily supports the PHH in the context of China. It suggests a national-wide coordinated environmental policy with a unified goal performs better than separately implementing stringent regulations in highly polluted areas. [ABSTRACT FROM AUTHOR]