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 in | Journal of environmental planning and management Vol. 65; no. 2; pp. 311 - 336 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Abingdon
Routledge
28.01.2022
Taylor & Francis Ltd |
Subjects | |
Online Access | Get full text |
ISSN | 0964-0568 1360-0559 1360-0559 |
DOI | 10.1080/09640568.2021.1882965 |
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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." |
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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. |
Author_xml | – sequence: 1 givenname: Zuocheng orcidid: 0000-0001-7113-6368 surname: Chen fullname: Chen, Zuocheng organization: College of Economics and Management, Shihezi University – sequence: 2 givenname: Krishna P. orcidid: 0000-0002-9780-5520 surname: Paudel fullname: Paudel, Krishna P. organization: Department of Agricultural Economics and Agribusiness, Louisiana State University (LSU) and LSU Agricultural Center – sequence: 3 givenname: Rongqing surname: Zheng fullname: Zheng, Rongqing organization: College of Economics and Management, Shihezi University |
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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 |
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