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Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment?

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  • Dinda, Soumyananda

Abstract

The economic literature on trade and environment seeks empirically test hypotheses about how trade affects the environment. It is important to resolve current policy debates. Applying panel data technique we examine the impacts of globalization on pollution level, pollution intensity and relative change of pollution for the developed (OECD), developing (Non-OECD) country groups, and the world as a whole. This paper examines the factor endowment and pollution haven hypotheses that predict how trade affects the environment. Interaction effects also play a crucial role to determine the impact of globalization on environment. In this study we use CO2 emission data and observe that the impact of globalization on environment heavily depends on the basic characteristics of a country and its dominating comparative advantage. The empirical results suggest that globalization increases CO2 emission, which is the main culprit of the global warming.

Suggested Citation

  • Dinda, Soumyananda, 2006. "Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment?," MPRA Paper 59111, University Library of Munich, Germany, revised 15 Oct 2006.
    • Handle: RePEc:pra:mprapa:59111
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    Cited by:

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    2. Bataka, Hodabalo, 2021. "Globalization and Environmental Pollution in Sub-Saharan Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    3. Shahbaz, Muhammad & Mallick, Hrushikesh & Kumar, Mantu & Loganathan, Nanthakumar, 2015. "Does Globalization Impede Environmental Quality in India?," MPRA Paper 67285, University Library of Munich, Germany, revised 15 Oct 2015.
    4. Muhammad Umer Author_Email: mohd.umer@gmail.com & M. Farooq Hussain & Miss Hanniya Abid, 2011. "Facing Challenges In The Global Environment: A Study Of International Business Transformation," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-206, Conference Master Resources.
    5. Muhammad Shahbaz, 2022. "Globalization–Emissions Nexus: Testing the EKC Hypothesis in Next-11 Countries," Global Business Review, International Management Institute, vol. 23(1), pages 75-100, February.
    6. Shahbaz, Muhammad, 2019. "Globalization-Emissions Nexus: Testing the EKC hypothesis in Next-11 Countries," MPRA Paper 93959, University Library of Munich, Germany, revised 13 May 2019.
    7. Nela Vlahinić Lenz & Barbara Fajdetić, 2022. "Does Economic Globalisation Harm Climate? New Evidence from European Union," Energies, MDPI, vol. 15(18), pages 1-17, September.
    8. Audi, Marc & Ali, Amjad, 2018. "Determinants of Environmental Degradation under the Perspective of Globalization: A Panel Analysis of Selected MENA Nations," MPRA Paper 85776, University Library of Munich, Germany.
    9. Natalia Zugravu-Soilita, 2017. "How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 293-338, February.
    10. Ning Chang, 2012. "The empirical relationship between openness and environmental pollution in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(6), pages 783-796, August.

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    More about this item

    Keywords

    Pollution Haven Hypothesis; Factor Endowment Hypothesis; Globalization; PHH; FEH; and interaction effect;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F2 - International Economics - - International Factor Movements and International Business
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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