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

Rossanto Dwi Handoyo, Yessi Rahmawati, Omar Guillermo Rojas Altamirano, Salsabila Fahar Ahsani, Adrianus Kabubu Hudang, Tri Haryanto

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

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

Original languageEnglish
Pages (from-to)385-393
Number of pages9
JournalInternational Journal of Energy Economics and Policy
Volume12
Issue number4
DOIs
Publication statusPublished - 19 Jul 2022

Keywords

  • Carbon Dioxide Emissions
  • Export
  • Foreign Direct Investment
  • Import
  • Poisson Pseudo-Maximum Likelihood
  • Tourism

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