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Revisiting the pollution haven hypothesis in ASEAN-5 countries: new insights from panel data analysis

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Abstract

Pollution haven hypothesis (PHH) has been investigated extensively in the existing literature due to global environmental issues such as global warming and climate change. However, there is still no consensus on whether this hypothesis is valid. Therefore, the aim of this study is to examine the validity of the PHH in ASEAN-5 countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) covering the period of 1981–2014. It is utilized the up-to-date panel data techniques taking cross-sectional dependence and slope heterogeneity into account to test the relationship. According to the results of CCEMG and AMG estimators, the validity of the PHH is confirmed in ASEAN-5 countries. The increase in foreign direct investments (FDI) increases environmental degradation in these countries. Our additional findings show that the environmental Kuznets curve (EKC) hypothesis (EKC) is also valid in these countries. There is an inverted U shape between economic growth and CO2 emissions. In addition, energy consumption exacerbates CO2 emissions.

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Authors and Affiliations

  1. Department of Economics, Faculty of Economics and Administrative Sciences, Hatay Mustafa Kemal University, 31060, Antakya, Hatay, Turkey

    Arif Eser Guzel

  2. Department of Public Finance, Faculty of Economics and Administrative Sciences, Hatay Mustafa Kemal University, 31060, Antakya, Hatay, Turkey

    İlyas Okumus

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  1. Arif Eser Guzel
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  2. İlyas Okumus
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Correspondence to Arif Eser Guzel.

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Guzel, A.E., Okumus, İ. Revisiting the pollution haven hypothesis in ASEAN-5 countries: new insights from panel data analysis. Environ Sci Pollut Res 27, 18157–18167 (2020). https://doi.org/10.1007/s11356-020-08317-y

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