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A new look at the FDI–income–energy–environment nexus: Dynamic panel data analysis of ASEAN

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  • Baek, Jungho

Abstract

The main focus of this paper is to estimate the effects of foreign direct investment (FDI) inflows, income and energy consumption on CO2 emissions using panel data of five ASEAN countries over 1981–2010. The results based on the pooled mean group (PMG) estimator of dynamic panels show that FDI tends to increase CO2 emissions, supporting evidence of the pollution haven hypothesis. We also find that income and energy consumption have a detrimental impact on reducing CO2 emissions.

Suggested Citation

  • Baek, Jungho, 2016. "A new look at the FDI–income–energy–environment nexus: Dynamic panel data analysis of ASEAN," Energy Policy, Elsevier, vol. 91(C), pages 22-27.
  • Handle: RePEc:eee:enepol:v:91:y:2016:i:c:p:22-27
    DOI: 10.1016/j.enpol.2015.12.045
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    References listed on IDEAS

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    1. Jung Wan Lee & Tantatape Brahmasrene, 2014. "ICT, CO 2 Emissions and Economic Growth: Evidence from a Panel of ASEAN," Global Economic Review, Taylor & Francis Journals, vol. 43(2), pages 93-109, June.
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    Cited by:

    1. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    2. repec:eee:enepol:v:129:y:2019:i:c:p:521-531 is not listed on IDEAS
    3. repec:eee:energy:v:171:y:2019:i:c:p:493-501 is not listed on IDEAS
    4. repec:eee:eneeco:v:74:y:2018:i:c:p:843-857 is not listed on IDEAS
    5. repec:eee:ecosys:v:42:y:2018:i:2:p:320-331 is not listed on IDEAS
    6. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    7. Khan, Hamad Hasul & Khan, Oshin, 2018. "Income-FDI-Environmental degradation nexus for developing countries: A panel analysis of America continent," MPRA Paper 88154, University Library of Munich, Germany.
    8. Jing Xu & Min Zhou & Hailong Li, 2016. "ARDL-based research on the nexus among FDI, environmental regulation, and energy consumption in Shanghai (China)," 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. 84(1), pages 551-564, October.
    9. Chen, George S. & Yao, Yao & Malizard, Julien, 2017. "Does foreign direct investment crowd in or crowd out private domestic investment in China? The effect of entry mode," Economic Modelling, Elsevier, vol. 61(C), pages 409-419.
    10. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.

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    Keywords

    ASEAN; CO2; Dynamic panel; Environment; FDI;

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