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An approach to the pollution haven and pollution halo hypotheses in MINT countries

Environmental Science and Pollution Research volume 26, pages 23010–23026 (2019)Cite this article

Abstract

This study examines the nonlinear relationship between foreign direct investment (FDI) and the ecological footprint (EF), trying to confirm the pollution haven hypothesis (PHH). We use a panel data model for MINT (Mexico, Indonesia, Nigeria, and Turkey) countries in the period 1990–2013 and an empirical framework based on the pollution haven hypothesis (PHH). Using the fully modified least squares (FMOLS) and dynamic ordinary least squares (DOLS) econometric methodologies, the empirical results confirm an inverted-U relationship between FDI and the ecological footprint. To reinforce our analysis, we check the connection between economic growth and the ecological footprint, validating the environmental Kuznets curve (EKC) hypothesis for MINT countries. Finally, we also confirm a negative connection between renewable energy use, the urbanization process, and the changes in the ecological footprint. These findings offer a series of useful recommendations for policymakers, where the promotion of clean industries and energy-efficiency actions are essential for reducing environmental damage in MINT countries. We highlight the viability of the ecological footprint as a first-order environmental indicator whose evolution is determined by demographic fluctuations.

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Notes

  1. Kim and Adilov (2012) simultaneously studied the pollution halo hypothesis and the pollution haven hypothesis and concluded that the two hypotheses are not contradictory.

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Affiliations

  1. Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, Cuenca, Spain

    Daniel Balsalobre-Lorente & José María Cantos-Cantos

  2. Banking and Finance Department, Eastern Mediterranean University, via Mersin 10, Famagusta, North Cyprus, Turkey

    Korhan K. Gokmenoglu & Nigar Taspinar

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  1. Daniel Balsalobre-Lorente
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  2. Korhan K. Gokmenoglu
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  3. Nigar Taspinar
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  4. José María Cantos-Cantos
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Correspondence to Daniel Balsalobre-Lorente.

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Balsalobre-Lorente, D., Gokmenoglu, K.K., Taspinar, N. et al. An approach to the pollution haven and pollution halo hypotheses in MINT countries. Environ Sci Pollut Res 26, 23010–23026 (2019). https://doi.org/10.1007/s11356-019-05446-x

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  • DOI: https://doi.org/10.1007/s11356-019-05446-x

Keywords

  • Ecological footprint
  • Pollution haven hypothesis
  • Foreign direct investment
  • Economic growth
  • Renewable energy
  • Urban population