Investigating the pollution haven hypothesis in Cote d’Ivoire: evidence from autoregressive distributed lag (ARDL) approach with structural breaks

Assamoi, Guy Roland; Wang, Shaoyuan; Liu, Yao; Gnangoin, Yobouet Thierry Bienvenu

doi:10.1007/s11356-020-08246-w

Research Article
Published: 06 March 2020

Investigating the pollution haven hypothesis in Cote d’Ivoire: evidence from autoregressive distributed lag (ARDL) approach with structural breaks

Guy Roland Assamoi¹,
Shaoyuan Wang¹,
Yao Liu¹ &
Yobouet Thierry Bienvenu Gnangoin²

Environmental Science and Pollution Research volume 27, pages 16886–16899 (2020)Cite this article

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Abstract

The pollution haven hypothesis (PHH) suggests that foreign direct investment (FDI) inflows contribute to rising carbon dioxide (CO₂) emissions in developing countries. This study aims to investigate the validity of the PHH in Cote d’Ivoire. For this purpose, FDI, real gross domestic product (GDP) per capita, energy consumption, and agriculture value added are included in the carbon dioxide emissions’ function. Based on time series data spanning from 1980 to 2014, the study utilized the autoregressive distributed lag (ARDL) approach. In addition to the introduction of structural breaks in the estimations techniques, this study contributes to the literature by focusing on a typical developing country that is currently experiencing increases both in FDI inflows and in CO₂ emissions. The findings indicated a cointegration relationship between the variables. Additionally, the ARDL results validate the PHH in Cote d’Ivoire as we find a positive relationship between FDI and CO₂ emissions. Likewise, the results showed that GDP per capita, energy consumption, and agriculture value added have a positive impact on CO₂ emissions. Based on the results, we advise Ivorian policymakers to strengthen the environmental regulations and focus on attracting clean FDI. Besides, the Ivorian government should implement energy-saving policies and promote the use of environment-friendly techniques in the agriculture sector.

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School of International Economics and Trade, Dongbei University of Finance and Economics, 217 Jianshan Street, Shahekou District, Dalian, 116025, People’s Republic of China
Guy Roland Assamoi, Shaoyuan Wang & Yao Liu
School of Economics, Dongbei University of Finance and Economics, 217 Jianshan Street, Shahekou, Dalian, People’s Republic of China
Yobouet Thierry Bienvenu Gnangoin

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Guy Roland Assamoi
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Shaoyuan Wang
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Yao Liu
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Yobouet Thierry Bienvenu Gnangoin
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All authors contributed to the study conception and methodology. Data collection and analysis were performed by Guy Roland Assamoi and Yobouet Thierry Bienvenu Gnangoin under the supervision of Shaoyuan Wang and Yao Liu. The first draft of the manuscript was written by Guy Roland Assamoi and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

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Correspondence to Guy Roland Assamoi.

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Assamoi, G.R., Wang, S., Liu, Y. et al. Investigating the pollution haven hypothesis in Cote d’Ivoire: evidence from autoregressive distributed lag (ARDL) approach with structural breaks. Environ Sci Pollut Res 27, 16886–16899 (2020). https://doi.org/10.1007/s11356-020-08246-w

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Received: 21 November 2019
Accepted: 25 February 2020
Published: 06 March 2020
Issue Date: May 2020
DOI: https://doi.org/10.1007/s11356-020-08246-w

Keywords

CO₂ emissions
Foreign direct investment
Pollution haven hypothesis
Agriculture value added
Economic growth
Energy consumption
Environmental Kuznets curve