Pollution halo or pollution haven: assessing the role of foreign direct investment on energy conservation and emission reduction

This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China's energy conservation and emissions reduction. We use provincial-level data on pollutants (CO 2 , wastewater emission, exhaust emission, and waste emission) avail...

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Published inJournal of environmental planning and management Vol. 65; no. 2; pp. 311 - 336
Main Authors Chen, Zuocheng, Paudel, Krishna P., Zheng, Rongqing
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 28.01.2022
Taylor & Francis Ltd
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ISSN0964-0568
1360-0559
1360-0559
DOI10.1080/09640568.2021.1882965

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Abstract This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China's energy conservation and emissions reduction. We use provincial-level data on pollutants (CO 2 , wastewater emission, exhaust emission, and waste emission) available from 2001 to 2015. Results indicated that FDI not only promotes China's "energy conservation," but also improves China's CO 2 emission efficiency and environmental efficiency. We find that export-oriented foreign companies can significantly improve China's energy efficiency and water quality. FDI enhances energy efficiency through eco-oriented technological progress and water quality, air quality through production-oriented technological progress. We also find that the impact of FDI on China's energy conservation and emission reduction has significant threshold effects. Our findings contradict the often believed "pollution haven hypothesis."
AbstractList This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China’s energy conservation and emissions reduction. We use provincial-level data on pollutants (CO2, wastewater emission, exhaust emission, and waste emission) available from 2001 to 2015. Results indicated that FDI not only promotes China’s “energy conservation,” but also improves China’s CO2 emission efficiency and environmental efficiency. We find that export-oriented foreign companies can significantly improve China’s energy efficiency and water quality. FDI enhances energy efficiency through eco-oriented technological progress and water quality, air quality through production-oriented technological progress. We also find that the impact of FDI on China’s energy conservation and emission reduction has significant threshold effects. Our findings contradict the often believed “pollution haven hypothesis.”
This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China's energy conservation and emissions reduction. We use provincial-level data on pollutants (CO 2 , wastewater emission, exhaust emission, and waste emission) available from 2001 to 2015. Results indicated that FDI not only promotes China's "energy conservation," but also improves China's CO 2 emission efficiency and environmental efficiency. We find that export-oriented foreign companies can significantly improve China's energy efficiency and water quality. FDI enhances energy efficiency through eco-oriented technological progress and water quality, air quality through production-oriented technological progress. We also find that the impact of FDI on China's energy conservation and emission reduction has significant threshold effects. Our findings contradict the often believed "pollution haven hypothesis."
This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China’s energy conservation and emissions reduction. We use provincial-level data on pollutants (CO₂, wastewater emission, exhaust emission, and waste emission) available from 2001 to 2015. Results indicated that FDI not only promotes China’s “energy conservation,” but also improves China’s CO₂ emission efficiency and environmental efficiency. We find that export-oriented foreign companies can significantly improve China’s energy efficiency and water quality. FDI enhances energy efficiency through eco-oriented technological progress and water quality, air quality through production-oriented technological progress. We also find that the impact of FDI on China’s energy conservation and emission reduction has significant threshold effects. Our findings contradict the often believed “pollution haven hypothesis.”
Author Chen, Zuocheng
Zheng, Rongqing
Paudel, Krishna P.
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  fullname: Zheng, Rongqing
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Snippet This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China's energy conservation and...
This paper uses spatial econometric and the threshold effect models to study the effects of foreign direct investment (FDI) in China’s energy conservation and...
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SubjectTerms Air pollution
Air quality
Carbon dioxide
Carbon dioxide emissions
China
Conservation
econometrics
Efficiency
Emissions
Emissions control
Energy conservation
energy conservation and emission reduction
Energy efficiency
Environmental assessment
environmental efficiency
Exhaust emission
Foreign companies
foreign direct investment
Foreign investment
International business
Pollutants
Pollution
pollution haven hypothesis
Technological progress
Wastewater
Water
Water pollution
Water quality
Title Pollution halo or pollution haven: assessing the role of foreign direct investment on energy conservation and emission reduction
URI https://www.tandfonline.com/doi/abs/10.1080/09640568.2021.1882965
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