Environmental Kuznets curve and the pollution-halo/haven hypotheses : an investigation in Brazilian municipalities.
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Date
2021
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Abstract
There is much discussion on the non-linear relationship between economic growth and
carbon dioxide (CO2) emissions. Additionally, the effects of Foreign Direct Investment (FDI) on
the environment are ambiguous, as both beneficial (i.e., pollution-halo) and harmful (i.e., pollution-
haven) effects were found. Therefore, the literature presents no consensus on either of these topics.
This is especially problematic for developing regions, as these regions represent growing economies
interested in receiving foreign investments, and their CO2
-related research is limited. This study
aims to understand the impacts of economic growth and FDI on the CO2 emissions of São Paulo state,
Brazil. To perform this study, a unique dataset on regional FDI was built, and 592 municipalities
were included. The analyses combine linear and non-linear estimations, and the results suggest
a non-linear relationship between Gross Domestic Product (GDP) per capita and CO2 emissions,
along with a negative association between FDI and CO2
. Finally, this study discusses possible policy
implications and contributes to the international literature.
Description
Keywords
Foreign direct investment, Economic growth, Carbon dioxide - CO2 - emissions, Pollution, São Paulo
Citation
SILVA, E. P. et al. Environmental Kuznets curve and the pollution-halo/haven hypotheses: an investigation in Brazilian municipalities. Sustainability, v. 13, 2021. Disponível em: <https://www.mdpi.com/2071-1050/13/8/4114>. Acesso em: 24 maio 2022.