Examining the pollution haven, and environmental kuznets hypothesis for ecological footprints: an econometric analysis of China, India, and Pakistan

Khan, Anwar; Chenggang, Yang; Yi, Wang Xue; Hussain, Jamal; Liu, Sicen; Bano, Sadia

doi:10.1080/13547860.2020.1761739

Cited by 53 publications

(21 citation statements)

References 73 publications

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“…Thus, it is critically important for the South Asian economies to restrict dirty FDI inflows to safeguard their environmental attributes. The results are similar to those highlighted by Khan et al [59] for China, India, and Pakistan.…”

Section: Resultssupporting

confidence: 92%

“…The inclusion of FDI into the EKC model is based on assessing the pollution haven hypothesis (PHH), which advocates FDI inflows degrading the environment. If higher FDI inflow shares increase the EF figures, then the PHH can be claimed to hold, whereby the sign of the predicted elasticity parameter δ 4 can be expected to be positive [59]. In contrast, a positive sign for δ 4 would validate the pollution halo effect [60].…”

Section: Empirical Model and Datamentioning

confidence: 95%

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Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

et al. 2021

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Fossil fuel-dependency has induced a trade-off between economic growth and environmental degradation across the developing nations in particular. Against this backdrop, this study aims to evaluate the impacts of renewable energy use on the ecological footprints in the context of four South Asian fossil fuel-dependent nations: Bangladesh, India, Pakistan, and Sri Lanka. The econometric analysis involves the use of recently developed methods that account for cross-sectional dependency, slope heterogeneity, and structural break issues in the data. The results reveal that renewable energy consumption reduces the ecological footprints while nonrenewable energy use boosts the ecological footprints. The results also confirm the validity of the environmental Kuznets curve and pollution haven hypotheses for the panel of the South Asian nations. Besides, foreign direct investment inflows are found to degrade the environment while higher institutional quality improves it. Furthermore, unidirectional causalities are run from overall energy use, economic growth, and institutional quality to ecological footprints. At the same time, bidirectional associations between foreign direct investment inflows and ecological footprints are also ascertained. The overall findings highlight the pertinence of reducing fossil fuel-dependency, enhancing economic growth, restricting dirty foreign direct investment inflows, and improving institutional quality to ensure environmental sustainability across South Asia.

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Section: Resultssupporting

confidence: 92%

Section: Empirical Model and Datamentioning

confidence: 95%

Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

et al. 2021

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“…Thus, it is pertinent to restructure the foreign finance policy of the government whereby emphasis must be given to attract the relatively cleaner and renewable energy-intensive forms of FDI. The unidirectional causal finding contradicts the bidirectional association between FDI inflows and ecological footprints reported by Khan et al ( 2020 ) for China, India, and Pakistan. Moreover, unidirectional causality from REO shares to ecological footprints is also ascertained from the causality analysis.…”

Section: Resultscontrasting

confidence: 78%

“…The authors particularly claimed that FDI inflows exert technological spillover effects across the Chinese provinces which have enabled them to reduce the aggregate CO 2 emissions in China. On the other hand, among the few studies that used ecological footprints to quantify environmental quality in this regard, Zafar et al ( 2019 ) and Khan et al ( 2020 ) found FDI inflows to be useful in reducing the ecological footprints to restore environmental harmony in the United States and India, respectively. Can et al ( 2020 ) also assessed the impacts of FDI on ecological footprints in the context of 84 developing countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Murshed

Elheddad

Ahmed

et al. 2021

Asia-Pac Financ Markets

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Phasing out fossil fuel dependency to adopt renewable energy technologies is pertinent for both ensuring energy security and for safeguarding the well-being of the environment. However, financial constraints often restrict the developing countries, in particular, from undergoing the renewable energy transition that is necessary for easing the environmental hardships. Against this background, this study makes a novel attempt to evaluate the impacts of FDI inflows on enhancing renewable energy use and attaining environmental sustainability in Bangladesh between 1972 and 2015. Using the autoregressive distributed lags with structural break approach to estimate the short- and long-run elasticities, it is found that FDI inflows enhance the share of renewable electricity output in the total electricity output levels of the country. Besides, FDI inflows are also evidenced to directly hamper environmental quality by boosting the ecological footprints figures of Bangladesh. Hence, it can be said that FDI promotes renewable electricity generation in Bangladesh but transforms the nation into a pollution haven. However, although FDI inflows cannot directly reduce the ecological footprints, a joint ecological footprint mitigation impact of FDI inflows and renewable electricity generation is evidenced. Besides, the findings also verify the authenticity of the Environmental Kuznets Curve hypothesis in Bangladesh’s context. Therefore, economic growth can be referred to as being both the cause and the panacea to the environmental problems faced by Bangladesh. These results, in a nutshell, calls for effective measures to be undertaken for attracting the relatively cleaner FDI in Bangladesh whereby the objectives of renewable energy transition and environmental sustainability can be achieved in tandem. In line with these findings, several appropriate financial globalization policies are recommended.

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“…Finally, economic growth and trade openness both assumed to increase ecological footprints, thus the following research question is made for analysis, i.e., does country's economic growth and trade liberalization policies cause ecological footprints? The earlier evidences from scholar writings suggested that both the stated factors negatively affect environment to verify 'pollution haven' hypothesis, which further cause ecological footprints on a global scale [18]. On the basis of research questions, the study made following research objectives, i.e., i) to examine the role of inbound tourism in increasing ecological footprints in a panel of selected countries.…”

Section: Introductionmentioning

confidence: 99%

Evaluating Ecological Footprints through Inbound Tourism, Population Density, and Global Trade

Anser¹,

Yousaf²,

Nassani³

et al. 2020

Pol. J. Environ. Stud.

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Environmental damages are largely visible by the man-made actions in general, including an enormous increase in international tourism, huge pressure on arable land by increasing population density, and global international trade. These stated factors are mainly responsible for 'ecological footprints' across the globe. The present study considered these factors in order to evaluate 'ecological footprints' in a panel of 130 countries for a period of 1995-2018. The dynamic differenced GMM estimator is used for empirical illustrations. The study used different regression estimators in order to get robust inferences and found that inbound tourism is the main detrimental factor of global environment that causes 'ecological footprint', which further exhibit the 'inverted U-shaped' relationship between them. Further, population density and countries economic growth first increases and later decreases ecological footprints to support 'inverted U-shaped relationship between them. The Granger causality results unable to verify the 'tourism-led growth' or 'growth-led tourism' hypothesis, while it shows 'no causal' relationship between them, although highly correlated in the regression estimates. Ecological footprint and population density both Granger cause inbound tourism, while the bidirectional relationship found between trade and inbound tourism. Sustainable tourism policies are highly needed to limit ecological footprints across countries.

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Examining the pollution haven, and environmental kuznets hypothesis for ecological footprints: an econometric analysis of China, India, and Pakistan

Cited by 53 publications

References 73 publications

Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Evaluating Ecological Footprints through Inbound Tourism, Population Density, and Global Trade

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