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The purpose of this study is to analyze the effect of foreign direct investment (FDI) on pollution emissions and how environmental regulation affects this relationship.

In the empirical research, the authors selected panel data for 30 provinces in China from 2005 to 2019 as samples. First, the authors used the instrumental variable method to verify the existence of the above hypotheses in China. Then, the authors analyzed the moderating effect of different types of environmental regulations on the environmental effects of FDI. Next, in further discussion, the authors analyzed the difference between the environmental effect and the moderating effect in different time periods and regions, respectively. Finally, the authors discussed whether the different intensities of environmental regulations lead to the transfer effect of FDI in choosing investment destinations.

The result shows that FDI can help reduce pollution emissions and create a “pollution halo” effect, which is enhanced by command-and-control regulation but suppressed by market-based incentives. The heterogeneity analysis reveals that the 18th National Congress of the Communist Party has weakened the pollution halo effect of FDI, while the environmental effect of FDI in the eastern region is not significant, but in the middle and western regions, there is a significant pollution halo effect and a positive moderating effect of environmental regulations. Finally, further analysis reveals that FDI has a transfer effect under command-and-control environmental regulations.

First, the main purpose of this paper is to study the relationship between FDI and pollution emissions from the perspective of heterogeneous environmental regulation. Therefore, there is no detailed discussion on their effect mechanism of them. Second, limited by data, the authors adopt the single index to measure the stringency index of command-and-control and market-based incentive environmental regulations in China. The single index may not be able to fully reflect the intensity of regional environmental regulation, so the construction of a composite indicator is necessary. These shortcomings are the focus of the authors' future research.

Under the guidance of high-quality development, the conclusions above can provide reference for adjusting FDI policies and improving environmental regulation policies.

The innovations in this paper can be summarized as the following four dimensions: First, the authors use the instrumental variable (IV) method to address endogeneity in the relationship between FDI and pollution emission, which can further ensure the robustness of the research results and increases the credibility of the paper. Second, the authors distinguish between two types of environmental regulations to investigate their moderating effect on the environmental impact of FDI. Third, the authors consider the temporal and spatial heterogeneity of both the environmental effects of FDI and the moderating effect of regulation. Last, the authors analyze the spatial spillover of environmental regulation through the study of the transfer effect.

The study examines the presence of the pollution haven or pollution halo hypothesis in Brazil, Russia, India, China and South Africa (BRICS) and Next-11 economies. Hence, it empirically tests the direct impact of foreign direct investment (FDI) on the ecological footprint. Further, it explores the moderating role of green innovation on the nexus between FDI and ecological footprint.

The study uses the Driscoll–Kraay (DK) standard error panel regression technique to examine the long-run elasticities amongst the variables for the group of emerging countries, BRICS and Next-11, during the period of 1992 to 2018. Further, statistical robustness is demonstrated using the fully modified ordinary least squares technique.

The empirical finding shows that FDI degrades environmental quality by raising the ecological footprint. Thus, it proves that FDI is a source of pollution haven in BRICS and Next-11 countries. However, green innovation negatively moderates the relationship between FDI and ecological footprint. That means the joint impact of green innovation, and FDI proves the presence of the pollution halo hypothesis. Further, renewable energy consumption is reducing the ecological footprint, but economic growth and industrialisation are worsening the environmental quality.

This study offers policy implications for governments and policymakers to promote environmental sustainability by improving green innovation and allowing FDI that encourages clean and advanced technology.

No prior studies examine the moderating role of green innovation on the relationship between FDI and ecological footprint in the context of emerging countries.

This paper aims to clarify the relationship between foreign direct investment (FDI) and carbon intensity. This study uses the dynamic panel data model to study and provide fresh evidence for the issue.

This study first uses the dynamic panel data model to consider the endogeneity problem, and applies a system-generalized method of moments estimator to study the effect of FDI on carbon intensity using the panel data of 188 countries during 1990-2013.

The result shows that FDI has a significant negative impact on carbon intensity of the host country. After considering the other factors, including share of fossil fuels, industrial intensity, urbanization level and trade openness, the impact of FDI on carbon intensity is still significantly positive. In addition, FDI also has a significant negative impact on carbon intensity of high-income countries and middle- and low-income countries.

This paper offers two contributions to the literature on the effect of FDI on carbon intensity. From a methodological perspective, this paper is the first to apply a dynamic panel data model to study the effect of FDI on carbon intensity using worldwide panel data. Second, this paper is the first to analyze the effect of FDI on carbon intensity in different countries with different income levels separately.

This study examines the environmental effects of foreign direct investment (FDI) inflows and economic growth by revisiting the pollution haven and EKC hypotheses in the context of Africa.

The underlying relationships are unravelled with the help of quantile regressions for a panel of 46 African countries over the 1996–2022 period.

The results show that FDI inflows significantly increase CO2 emissions, supporting the pollution haven hypothesis (PHH) in Africa. There is also evidence of the N-shaped EKC hypothesis. When analysing different income groups, PHH and EKC remain consistent, except in low-income countries where only PHH is observed. However, the environmental impact of FDI inflows and economic growth decreases at higher quantiles. These findings suggest that policymakers in Africa should strengthen environmental regulations and adopt common environmental standards that encourage green technologies.

This study fills an empirical research gap by comprehensively examining the relationship between FDI, economic growth, and environmental degradation in African countries. Unlike previous studies focused on the inverted U-shaped EKC, our research reveals the existence of an N-shaped EKC in Africa.

This study aims to explore the empirical relationship between public–private investment (PPI) in energy and environmental quality.

The authors hypothesize that PPI can reduce pollution emissions and test this hypothesis by sampling the 20-year data of emerging and growth-leading economies (EAGLE) and adopting two estimation techniques named panel estimated generalized least square and fully modified ordinary least square models.

The empirical analysis vows that PPI has an inverse relationship with CO₂ emissions, corroborating the sustainable development driving role of PPI. In addition, the empirical outcomes suggest a negative/positive role of energy imports and economic growth. Meanwhile, foreign direct investment is negatively linked with CO₂ emissions, corroborating the pollution halo hypothesis in the case of EAGLE. However, financial development shows a positive relationship with CO₂ emissions.

This study offers an important policy outlay regarding the pollution mitigation role of PPI in EAGLE. The environmental sustainability in underlying economies can be achieved by enhancing the magnitude of public–private cooperation in energy investment. The empirical analysis supplements cutting-edge empirical evidence regarding PPI as a driver of important sustainable development goal (SDG), i.e. environmental sustainability.

To the best of the authors’ knowledge, this study is the first study that examines how one can achieve an important SDG regarding environmental sustainability through PPI in energy.

The Quadrilateral Group for Security Dialogues (QUAD), comprising Japan, Australia, India, and the USA, has experienced a noteworthy escalation in both environmental depletion and economic performance over the preceding 2 decades. Consequently, it becomes crucial to outline strategies through which the QUAD can attain a harmonious equilibrium between sustainable economic growth and ecological well-being. This research endeavors to dissect the intricate relationships among trade globalization, regulatory quality, and environmental sustainability within the QUAD for the period 1990–2021. The study checks for the Pollution Haven Hypothesis (PHH), and Pollution Halo Effect Hypothesis (PHEH).

The long-run association is based on the autoregressive distributed lag (ARDL) model and bounds test approach to cointegration while divergence or convergence is studied with the help of decoupling index (DI). Results have been verified by applying serial correlation LM test, autoregressive conditional heteroskedasticity (ARCH), and cumulative sum of recursive residuals (CUSUM) tests to ensure the robustness and stability of the model.

The empirical results of this study affirm the applicability of the PHEH in the contexts of India, Japan, and the USA, whereas the PHH is validated in the case of Australia. Furthermore, the analysis reveals the existence of relative decoupling solely in the case of India. This testifies that the rate of growth of the Indian economy surpasses the rate of growth in ecological footprint (EF), indicating a relative reduction in the intensity of environmental impact per unit of economic growth.

The empirical findings of our study suggest that countries with effective regulatory systems are better positioned to control and mitigate the potential adverse environmental effects resulting from increased global trade. Thus, policymakers are prompted to reassess the development policies for sustainable economic growth that will minimize adverse environmental repercussions. The implication of the negative relation between urbanization and EF is paramount for policymakers in developing countries seeking strategies for balanced urban development that aligns with environmental sustainability.

The present study is a unique exploration of the impact of trade globalization and regulatory quality on EF, specifically on PHH/PHEH in the context of QUAD.

This study is motivated by the Compact with Africa (CWA) initiative to promote foreign direct investment (FDI) in Africa. However, FDI is argued to be one of the primary causes of environmental pollution (CO2 emissions). In that regard, this study estimates the impact of the CWA initiative on FDI and environmental pollution.

The study utilized the difference-in-difference (DID) and triple difference (DDD) estimation strategies to examine the causal impact of the CWA initiative on FDI and environmental pollution from 2005 to 2019. The study selected nine CWA countries and nine non-CWA countries as treatment and control samples.

The authors found that the CWA initiative positively promotes FDI in the participant countries compared to non-participant countries. The CWA initiative also promoted environmental pollution in the CWA countries compared to non-CWA countries. Furthermore, the DDD estimates show that the effect of the CWA initiative on environmental pollution is through FDI.

The authors recommend policies to attract environmentally friendly FDI for both Compact and non-Compact economies.

The study is the first to provide empirical evidence on the CWA initiative on FDI and environmental pollution in Africa. The study used a quasi-experimental method on the relationship between FDI and environmental pollution in Africa.

In recent years, most emerging economies have experienced large foreign direct investment inflows to the real estate sector (FDIRE) and increases in carbon dioxide (CO₂) emissions. The purpose of this study is to empirically investigate the effect of FDIRE on CO₂ emissions in a set of emerging economies.

Applying fixed‐effect and generalized method of moments (GMM) techniques, this paper uses related observations from 31 emerging economies between 2000 and 2008 to analyze the impacts of FDIRE on CO₂ emissions.

The empirical results show that FDIRE does not contribute to CO₂ emissions. It is also found that energy consumption, urbanization and economic development are important determinants of CO₂ emissions in emerging economies.

While there has been a series of papers that investigated the relationship between aggregate FDI and CO₂ emissions, very few empirical studies have examined the relation between sectoral FDI and CO₂ emissions across a large number of emerging economies.

The literature argues that human activities are responsible for environmental pollution and world climate change. Africa is the second-largest continent by population and its socio-economic conditions are adversely affected by climate change due to environmental pollution. Therefore, this study investigates the relationship between human activities, the environment and the economic growth of 38 African countries from 2000 to 2018.

This study employs a simultaneous equations model called Seemingly unrelated regression.

Human capital development (HDI) and environmental health (EH) have a positive and non-linear relationship, while HDI and ecosystem vitality (EV) are negative and non-linear. The relationship between gross domestic product per capita (GDPPC) and EH is negative and non-linear. However, the GDPPC-EV link is insignificant. Trade openness (TO) and EV have a negative and non-linear relationship, but trade significantly improves EH. Urbanisation-EV relationship is positive and non-linear. However, urbanisation significantly reduces EH. Technology has a positive and non-linear relationship with EH and EV. The study also found that EH and EV positively affects the economy.

This is the first study to analyse the most concerned countries in-depth. Thus, it provides appropriate and sound policies that consider the unique characteristics of the nations. Moreover, it uses a robust estimation technique that overcomes the endogeneity problem and offers insight into the relationship between the variables, including the feedback effect of the environment on growth.

This study aims to analyze the convergence of environmental degradation clubs in the Association of Southeast Asian Nations (ASEAN). In addition, this study also analyzes the influence of renewable energy and foreign direct investment (FDI) on each club as an intervention to change the convergence pattern in each club.

This study analyzes the club convergence of environmental degradation in an effort to find out the distribution of environmental degradation reduction policies. This study uses club convergence with the Phillips and Sul (PS) convergence methodology because it considers multiple steady-states and is robust. This study uses annual panel data from 1998 to 2020 and ASEAN country units with ecological footprints as proxies for environmental degradation. After obtaining the club results, the analysis continued by analyzing the impact of renewable energy and FDI on each club using panel data regression and the Stochastic Impacts by Regression on Population, Affluence and Technology model specification.

Based on club convergence, ASEAN countries can be grouped into three clubs with two divergent countries. Club 1 has an increasing pattern of environmental degradation, while Club 2 and Club 3 show no increase. Club 1 can primarily apply renewable energy to reduce environmental degradation, while Club 2 requires more FDI. The authors expect policymakers to take into account the clubs established to formulate collaborative policies among countries. The result that FDI reduces environmental degradation in this study is in line with the pollution halo hypothesis. This study also found that population has a significant effect on environmental degradation, so policies to regulate population need to be considered. On the other hand, increasing income has no effect on reducing environmental degradation. Therefore, the use of renewable energy and FDI toward green investment is expected to intensify within ASEAN countries to reduce environmental degradation.

This research is by far the first to apply PS Club convergence to environmental degradation in ASEAN. In addition, this study is also the first to analyze the influence of renewable energy and FDI on each club formed, considering the need for renewable energy use that has not been maximized in ASEAN.