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An Empirical Investigation between FDI, Tourism, and Trade on CO2 Emission in Asia: Testing Environmental Kuznet Curve and Pollution Haven Hypothesis

Author

Listed:
  • Rossanto Dwi Haryanto

    (Department of Economics, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia,)

  • Yessi Rahmawati

    (Department of Economics, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia,)

  • Omar Guillermo Rojas Altamirano

    (Universidad Panamericana, Mexico City, Mexico,)

  • Salsabila Fahar Ahsani

    (Department of Economics, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia,)

  • Adrianus Kabubu Hudang

    (Airlangga University, Surabaya, Indonesia; Wira Wacana Christian University Sumba Timur, Indonesia)

  • Tri Haryanto

    (Faculty of Economic and Business, Airlangga University, Surabaya, Indonesia.)

Abstract

This study aims to analyze the influence of foreign direct investment, tourism, exports, and imports on carbon dioxide (CO2) emissions in the High-Income State, Upper-Middle Income, and Lower-Middle-Middle Income in Asia during the period of 2010 to 2019. This study uses the Poisson Pseudo-Maximum Likelihood (PPML) method. The results of this study indicate that Environmental Kuznets Curve Hypothesis (EKC) is valid in the country of High Income and Upper-Middle Income. In addition, there is a non-linear relationship between foreign direct investment (FDI), tourism, Export, and imports on carbon dioxide (CO2) emissions. The interaction variables, which are a foreign direct investment with tourism and foreign direct investment with Export. Each of them is reducing carbon dioxide emissions only in high-income countries. Meanwhile, the interaction variables between foreign direct investment and imports reduce carbon dioxide emissions in high-income countries. However, it increases the carbon dioxide emissions in the upper-middle-income country

Suggested Citation

  • Rossanto Dwi Haryanto & Yessi Rahmawati & Omar Guillermo Rojas Altamirano & Salsabila Fahar Ahsani & Adrianus Kabubu Hudang & Tri Haryanto, 2022. "An Empirical Investigation between FDI, Tourism, and Trade on CO2 Emission in Asia: Testing Environmental Kuznet Curve and Pollution Haven Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 385-393, July.
    • Handle: RePEc:eco:journ2:2022-04-41
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    More about this item

    Keywords

    Carbon Dioxide Emissions; Export; Foreign Direct Investment; Import; Poisson Pseudo-Maximum Likelihood; Tourism;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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