Scholarlink

<p>This empirical study estimates the environmental consequences of foreign direct investment (FDI) in the top-10 CO₂-emitting Asia-Pacific economies, particularly focusing on whether it improves or worsens environmental quality. The primary purpose is to estimate the heterogeneous effects of economic growth, foreign direct investment, trade openness, industrial value added, and energy consumption on environmental degradation. For this purpose, the study considers panel data from 1994 to 2022 and employs the Method of Moments Quantile Regression (MMQR) approach to capture variation across lower, middle, and upper emission quantiles. The empirical results show that economic growth is associated with lower CO₂ emissions, indicating partial decoupling. In contrast, foreign direct investment, industrial value added, and energy consumption significantly increase CO₂ emissions, with stronger effects observed at higher emission quantiles. However, trade openness does not significantly affect environmental degradation at any emission level. These findings support the Pollution Paradise Hypothesis (PPH), suggesting that FDI inflows contribute to environmental deterioration rather than improvement. The study contributes to the empirical literature by providing robust quantile-based evidence on the FDI–environment nexus and recommends the need to redirect FDI toward environmentally sustainable sectors, strengthen environmental regulations governing foreign investments, implement carbon pricing mechanisms, promote renewable energy adoption, and enhance regional cooperation through platforms such as APEC and ASEAN to facilitate low-carbon transitions.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Testing the pollution paradise hypothesis and the pollution halo hypothesis in the top-10 CO2-emitting Asia-Pacific economies: evidence from the MMQR and system GMM methods

  • 期刊论文

  • 发表日期：

    2026年4月20日

查看全文
  • Huri Gül Aybudak,
  • Waqar Khalid

摘要

This empirical study estimates the environmental consequences of foreign direct investment (FDI) in the top-10 CO₂-emitting Asia-Pacific economies, particularly focusing on whether it improves or worsens environmental quality. The primary purpose is to estimate the heterogeneous effects of economic growth, foreign direct investment, trade openness, industrial value added, and energy consumption on environmental degradation. For this purpose, the study considers panel data from 1994 to 2022 and employs the Method of Moments Quantile Regression (MMQR) approach to capture variation across lower, middle, and upper emission quantiles. The empirical results show that economic growth is associated with lower CO₂ emissions, indicating partial decoupling. In contrast, foreign direct investment, industrial value added, and energy consumption significantly increase CO₂ emissions, with stronger effects observed at higher emission quantiles. However, trade openness does not significantly affect environmental degradation at any emission level. These findings support the Pollution Paradise Hypothesis (PPH), suggesting that FDI inflows contribute to environmental deterioration rather than improvement. The study contributes to the empirical literature by providing robust quantile-based evidence on the FDI–environment nexus and recommends the need to redirect FDI toward environmentally sustainable sectors, strengthen environmental regulations governing foreign investments, implement carbon pricing mechanisms, promote renewable energy adoption, and enhance regional cooperation through platforms such as APEC and ASEAN to facilitate low-carbon transitions.