Search results

1 – 10 of over 1000
Article
Publication date: 5 December 2023

Lakshmana Padhan and Savita Bhat

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 4
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 28 March 2022

Stanley Emife Nwani

The purpose of the study is to examine the relationship between air pollution and life expectancy considering the roles of institutional quality, agricultural output, foreign…

Abstract

Purpose

The purpose of the study is to examine the relationship between air pollution and life expectancy considering the roles of institutional quality, agricultural output, foreign direct investment (FDI) and other socio-economic variables in Nigeria from 1981Q1 to 2019Q4.

Design/methodology/approach

The study employed spliced quarterly data from annual series collected from the World Bank development indicators and Central Bank of Nigeria. The dynamic multivariate models were analysed using the vector error correction mechanism (VECM), variance decomposition and Granger causality techniques.

Findings

The VECM result indicated a statistically significant adverse effect of air pollution on life expectancy. However, institutional quality, gross domestic product per capita, agricultural output, government social expenditure and school enrolment rate ameliorate the adverse health effects of air pollution, while FDI had mixed effects on life expectancy at different significance levels and at varying lag lengths. The Granger causality result revealed a uni-directional causality from air pollution to life expectancy; bidirectional causal chain between agriculture, FDI, government social expenditure and life expectancy, while a uni-directional causal linkage run from life expectancy to income per head and from school enrolment to life expectancy respectively. However, there is no evidence of causation between institutional quality and life expectancy due to weak institutional quality, but foreign direct invest causes carbon emission in a uni-directional manner in line with pollution haven hypothesis.

Research limitations/implications

The study's modelling is limited by not considering the resource curse variable in the model due to paucity of data. Nigeria is the biggest crude oil exporter in Africa and ranks 13th globally with daily output of about 2.4 m barrels. Thus, the negation of resource curse in air pollution–life expectancy nexus de-emphasises the effectiveness of rich resources on health and environment. Future studies could address this limitation by incorporating resource curse in environmental-health models for Nigeria.

Practical implications

It is imperative for the country to adopt stringent anti-air pollution strategies that would establish a balance between FDI attraction and agricultural expansion to the benefits of her citizens' longevity. Also, education should be considered as a strategic action to enhance life expectancy through expansion in the provision, accessibility and affordability to improved school enrolment rate. The choice of quarterly time series over annual data helped to establish the current relationship between air pollution and life expectancy using efficient estimators.

Originality/value

The study contributes to literature by disaggregating yearly series into quarterly series, which has implications for the efficiency of the estimates, unlike earlier studies which ignored this fundamental process. The result of this study produced reliable policy direction for improvement in life expectancy in an emerging economy since quarterly estimates are more robust and reliable for forecasting than its yearly counterpart. The outcome of the study extended the original tenets of the Grossman's health stock theory using the environmental Kuznets curve (EKC) and pollution haven hypotheses (PHH).

Details

International Journal of Social Economics, vol. 49 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 19 October 2023

Lin Fu, Rui Long, Xiaohua Sun and Yun Wang

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.

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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

Originality/value

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.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Book part
Publication date: 13 November 2014

Maoliang Bu, ChinTe Lin and Shuwen Zhai

This paper investigates how relative environmental regulation influences the flow of foreign direct investment (FDI), and thereby assesses the pollution haven hypothesis (PHH). In…

Abstract

This paper investigates how relative environmental regulation influences the flow of foreign direct investment (FDI), and thereby assesses the pollution haven hypothesis (PHH). In this field, conflicting results exist, partly due to the mere consideration of absolute environmental regulation or the inadequate consideration of endogeneity. Concerning these, we study China’s inward FDI from 26 developed countries and 12 developing countries over 1996–2009, and collect four different environmental regulation indicators at relative values of CO2, SO2, PM10, and an environmental regulation index. Using an instrumental variable approach, we find strong PHH evidence no matter for the subsample of FDI from developed countries or the one from developing countries. Moreover, we show how such results can be masked if failing to consider the endogeneity.

Details

Globalization and the Environment of China
Type: Book
ISBN: 978-1-78441-179-4

Keywords

Article
Publication date: 23 November 2023

Stanley Emife Nwani

This study aims to examine the relationship between pollution and life expectancy in oil producing communities, where there is a dearth of empirical evidence on how knowledge and…

Abstract

Purpose

This study aims to examine the relationship between pollution and life expectancy in oil producing communities, where there is a dearth of empirical evidence on how knowledge and coping strategy, agriculture and foreign capital inflows mediate the relationship between pollution and life expectancy.

Design/methodology/approach

The study employed a cross sectional survey design to analyze the roles of knowledge and coping strategy, agriculture and foreign capital inflows in the relationship between pollution and life expectancy in Benekuku and Okpai oil producing communities in the Niger Delta. The study employed the modern structural equation modeling (SEM) estimator.

Findings

Estimates show the mediating effect of agriculture on air pollution-longevity (coeff. = 0.398; t-value = 4.425; p < 0.05) and (coeff. = −0.120; t-value = −3.862; p < 0.05) mediating effect of foreign capital. The result revealed that agriculture and foreign capital inflows are significant mediators in pollution-life expectancy relations, affirming the Niger Delta as a pollution haven. However, knowledge and coping strategy with estimate of (coeff. = 0.233; t-value = 6.150; p < 0.05) spurs life expectancy.

Practical implications

The study suggests knowledge of hazard identification and reporting and awareness of coping strategy as the panacea to poor life expectancy rate in these local oil producing communities.

Originality/value

The study departs from existing works by estimating the mediating roles of agriculture and foreign capital inflow in air pollution-Life expectancy by controlling for knowledge and coping strategy using the structural equation model with ethical approval from Health Ethics Research Committee.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0734

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 19 September 2017

Yanmin Shao

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…

4772

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Climate Change Strategies and Management, vol. 10 no. 1
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 10 January 2023

Festus Victor Bekun, Bright Akwasi Gyamfi, Mfonobong Udom Etokakpan and Burçin Çakir

This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their…

Abstract

Purpose

This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their implications on trade inflow. This trajectory has its impact, either positive/negative, on key macroeconomic indicators, to say the least on environmental sustainability, especially emerging economies. To this end, the need to explore the connection between foreign direct investment (FDI) inflow and energy consumption amidst the wave of economic globalisation is timely and pertinent for the case of Turkey.

Design/methodology/approach

This study seeks to explore the interaction between the outlined variables in a carbon-income framework for annual time series data from 1970 to 2016. A series of econometrics strategies was used consisting of unit root tests to examine the stationarity properties of the highlighted series. Subsequently, Pesaran’s Bounds testing technique is used to explore the long-run equilibrium relationship between the highlighted variables in conjunction with the Johansen cointegration test. For long-run regression coefficients, Pesaran’s autoregressive distributed lag and dynamic ordinary least squares methodology are used, and innovative accounting approaches are used to explore the responsiveness of each variable on another.

Findings

Empirical results validate the pollution haven hypothesis (PHH) in the long run for the case of Turkey. Thus suggesting that FDI inflow induced environmental degradation in Turkey. Additionally, this study observed that renewable energy, on the contrary, improves the quality of the environment. This study also affirms the presence of the environmental Kuznets curve phenomenon, indicating that Turkey, at its early stage of economic trajectory, emphasis is on economic growth rather than environmental quality. This suggests a need for more deliberate action(s) by the government administrators to pursue cleaner FDI inflow and energy technologies and strategies to foster a clean environment in Turkey and a cleaner ecosystem at large.

Originality/value

This study is unique in its choice of variables which is in line with the United Nations Sustainable Development Goals (SDGs) agenda to be achieved by 2030 and is very limited in the extant literature. From the economic perspective, the effect of the PHH is of interest especially to ascertain the extent the interplay among the variables has on the economy of Turkey. The empirical insights on PHH hypothesis have received less documentation in the extant literature especially for emerging economy like Turkey. Thus, this study seeks to revisit this theme for Turkey with aim to presents environmentally sustainable strategies without compromise for economic growth. Thus, this study seeks to revisit this theme.

Details

International Journal of Energy Sector Management, vol. 17 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 12 April 2022

Mohamed Elheddad, Abdelrahman J.K. Alfar, Radi Haloub, Neetu Sharma and Patrick Gomes

The purpose of this study is to identify the effects of MNCs measured by the foreign direct investment (FDI) inflows on the promotion of renewable energy consumption and…

Abstract

Purpose

The purpose of this study is to identify the effects of MNCs measured by the foreign direct investment (FDI) inflows on the promotion of renewable energy consumption and non-renewable energy in Bangladesh. It is an emergency issue these days and makes some policy suggestions.

Design/methodology/approach

Based on the literature review, the study sets a time series models to empirically test FDI degrades the environmental quality in Bangladesh, using the parametric (GMM, IV estimations) and non-parametric approaches (quantile regression).

Findings

The main findings drawn from the empirical analysis are as follows. First, the FDI inflows lead to more CO2 emissions in the Bangladeshi economy. In other words, the MNCs promote the usages of non-renewable energy which causes an increase in pollution. Second, the FDI inwards discourage renewable energy consumption and in terms of magnitude, the negative impacts of FDI on renewable energy are higher than the positive effect of FDI on CO2 emissions. This makes the situation worse.

Research limitations/implications

This study is limited to Bangladesh and explores the total impact of FDI on the environment. For further investigation, it would be better to do a detailed investigation on the FDI-renewable and nonrenewable energy relationship. For instance, one could test which type of FDI promotes green energy consumption and which one is dirtier. So, the sectorial FDI effects on pollution.

Originality/value

Most past studies parametric techniques and did not compare the effects of FDI on renewable and non-renewable energy consumption, Unlike the previous empirical studies, this paper uses GMM and IV estimations for the parametric approach and quantile regression (QR) as a robustness check. Also, it is the first study that approves the crowding-out effect of non-renewable using the FDI channel.

Details

International Journal of Emergency Services, vol. 11 no. 3
Type: Research Article
ISSN: 2047-0894

Keywords

Article
Publication date: 7 June 2013

Hassan Gholipour Fereidouni

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

1308

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Management of Environmental Quality: An International Journal, vol. 24 no. 4
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 15 March 2023

Ongo Nkoa Bruno Emmanuel, Dobdinga Cletus Fonchamnyo, Mamadou Asngar Thierry and Gildas Dohba Dinga

The continuous increase in the negative gap between biocapacity and ecological footprint has remained globally persistent since early 1970. The purpose of this study is to examine…

1726

Abstract

Purpose

The continuous increase in the negative gap between biocapacity and ecological footprint has remained globally persistent since early 1970. The purpose of this study is to examine the effect of foreign capital, domestic capital formation, institutional quality and democracy on ecological footprint within a global panel of 101 countries from 1995 to 2017.

Design/methodology/approach

The empirical procedure is based on data mix. To this end, this study uses a battery of testing and estimation approaches both conventional (no cross-sectional dependence [CD]) and novel approaches (accounting for CD). Among the battery of estimation techniques used, there are the dynamic ordinary least square, the mean group, the common correlation effect mean group technique, the augmented mean group technique, the Pooled mean group and the dynamic common correlation effect technique with the desire to obtain outcomes robust to heteroskedasticity, endogeneity, cross-correlation and CD among others.

Findings

The estimated outcomes indicate that using different estimators’ domestic capital formation consistently degrades the environment through an increase in ecological footprint, while institutional quality consistently enhances the quality of the environment. Further, the outcome reveals that, though foreign capital inflow degrades the environment, the time period is essential, as it shows a short-run environmental improvement and a long-run environmental degradation. Democratic activities show a mixed outcome with short-run degrading effect and a long-run enhancement effect on environmental quality.

Practical implications

Green investment should be the policy target of all economies, and these policies should be adopted to target both domestic capital and foreign capital alike. Second, the adoption of democratic practices will produce good leaders that will not just design short-term policies to blindfold the populace temporary but those that will produce long-term-oriented practices that will better and enhance the quality of the environment through the reduction of the global footprint. Equally, enhancing the institutional framework like respect for the rule of law in matters of abatement should be encouraged.

Originality/value

Although much research on the role of macroeconomic indicators on environmental quality has been done this far, democratic practices, intuitional quality and domestic capital have been given little attention. This research fills this gap by considering robust empirical techniques.

Details

Journal of Global Responsibility, vol. 14 no. 4
Type: Research Article
ISSN: 2041-2568

Keywords

1 – 10 of over 1000