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Does technology innovation matter for environmental pollution? Testing the pollution halo/haven hypothesis for Asian countries

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Abstract

China’s GDP grew 9% annually during the end of the twentieth century. This economic growth degrades China’s ecology, making it the world’s greatest polluter. This position forced China to invest in developing nations and to take advantage of low-cost labor and increased pollution quotas from the World Trade Organization (WTO) to meet sustainable development objectives without environmental harm. The significance of this study is, first, this study examines the influence of Chinese outward foreign direct investment, gross domestic product, trade openness, technological innovation, and energy consumption on carbon emissions in Asian countries (Turkey, Pakistan, the Philippines, Singapore, India, Indonesia, and Cambodia). Secondly, the panel autoregressive distributed lag cointegration (ARDL) technique was used on data from 2000 to 2020 to investigate the pollution halo/haven hypothesis and environmental Kuznets curve hypothesis for south Asian nations. This analysis demonstrated that Chinese outbound foreign direct investment increases carbon emissions and confirms the pollution halo concept. Except for India and Pakistan, these nations show a U-shaped link between Chinese foreign direct investment and carbon emissions. So, policy implications recommended by the results of this study are foreign direct investment inflows with modern and ecofriendly technological transfer and enhancement in labor, and conservational management practices will benefit emerging countries to attain their sustainable development goals.

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Acknowledgements

We thank Professor Huaming Song, School of Economics and Management, Dr. Zulqarnain, for their assistance with the guidelines and Dr. Farina for his comments that significantly helped us improve the manuscript.

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Authors and Affiliations

  1. School of Economics and Management, Nanjing University of Science and Technology, Nanjing, 210094, China

    Kashif Abbass & Huaming Song

  2. School of Economics and Finance, Xi’an Jiotong University, Xi’an, Shaanxi, People’s Republic of China

    Zulqarnain Mushtaq

  3. School of Public Administration, Nanjing Agriculture University, Nanjing, 210095, China

    Farina Khan

Authors
  1. Kashif Abbass
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  2. Huaming Song
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  3. Zulqarnain Mushtaq
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  4. Farina Khan
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Contributions

Kashif Abbass: conceptualization, introduction, methodology, interpreted results, writing-original draft preparation. Huaming Song: visualization, validation, conclusion, writing-original draft preparation. Zulqarnain Mustaq: conceptualization, formal analysis, project administration, supervision, finalizes manuscript and review and editing. Farina Khan: literature review, formal analysis, and review and editing. Kashif Abbass: writing-original draft preparation, review and editing

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Correspondence to Huaming Song.

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Abbass, K., Song, H., Mushtaq, Z. et al. Does technology innovation matter for environmental pollution? Testing the pollution halo/haven hypothesis for Asian countries. Environ Sci Pollut Res 29, 89753–89771 (2022). https://doi.org/10.1007/s11356-022-21929-w

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