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The Critical Review of the Pollution Haven Hypothesis (PHH)

Author

Listed:
  • Fozia Latif Gill

    (Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Malaysia,)

  • K Kuperan Viswanathan

    (Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Malaysia)

  • Mohd Zaini Abdul Karim

    (Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Malaysia)

Abstract

This paper evaluates the theoretical and empirical basis of the Pollution Haven Hypothesis (PHH) and Porter Hypothesis. The PHH claims that owing to international trade and Foreign Direct Investment (FDI), the developing countries have become the pollution haven for the advanced countries. The Porter Hypothesis portraits an opposite picture than the PHH. According to, the Porter Hypothesis, the FDI in home country induce the induction of more advanced and clean technologies that lead to cleaner environment. In the literature, there is mixed support for these opposing hypotheses. This paper therefore, recommends further rigours research that aims at to find out the true link between trade, FDI and environmental degradation.

Suggested Citation

  • Fozia Latif Gill & K Kuperan Viswanathan & Mohd Zaini Abdul Karim, 2018. "The Critical Review of the Pollution Haven Hypothesis (PHH)," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 167-174.
  • Handle: RePEc:eco:journ2:2018-01-20
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    3. Muhammad Khan & Arslan Tariq Rana & Wafa Ghardallou, 2023. "FDI and CO2 emissions in developing countries: the role of human capital," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(1), pages 1125-1155, May.
    4. José M. Cansino & Rocio Román-Collado & Juan C. Molina, 2019. "Quality of Institutions, Technological Progress, and Pollution Havens in Latin America. An Analysis of the Environmental Kuznets Curve Hypothesis," Sustainability, MDPI, vol. 11(13), pages 1-20, July.
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    6. Panteli Maria & Delipalla Sofia, 2022. "The Impact of Institutions on Economic and Environmental Performance: Evidence From Europe," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 125-141, December.
    7. Chung Nguyen Hoang, 2021. "The Effects of Economic Integration on CO2 Emission: A View from Institutions in Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 374-383.
    8. Sakariyahu, Rilwan & Lawal, Rodiat & Etudaiye-Muhtar, Oyebola Fatima & Ajide, Folorunsho Monsuru, 2023. "Reflections on COP27: How do technological innovations and economic freedom affect environmental quality in Africa?," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
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    More about this item

    Keywords

    Pollution; Trade; FDI;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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