Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS
TL;DR: Results from technique and composition effects show that increase in economic growth leads towards more pollution emissions, however, economic growth declines as pollution crosses a certain limit and foreign direct investment is also found positively related with pollution.
About: This article is published in Journal of Environmental Management.The article was published on 2017-07-01. It has received 229 citations till now. The article focuses on the topics: Environmental pollution & Foreign direct investment.
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TL;DR: In this article, the authors examined the association between foreign direct investment (FDI) and carbon emissions for the Middle East and North African (MENA) region in 1990-2015, including biomass energy consumption as an additional determinant of carbon emissions.
386 citations
TL;DR: In this article, the authors examined the long-run and short-run impacts of fossil fuels consumption, foreign direct investment and economic growth on carbon emissions in fifteen developing Asian countries.
374 citations
TL;DR: In this article, the role of renewable energy consumption and commercial services trade in generating carbon emissions was explored for the first time using a panel of 25 major developing countries during the years 1996-2012.
245 citations
TL;DR: This paper conducted a meta-analysis of the effect of FDI on environmental emissions using 65 primary studies that produce 1006 elasticities and found that FDI significantly reduces environmental emissions, however, after accounting for heterogeneity in the studies, after disaggregating the effect for countries at different levels of development as well as for different pollutants.
239 citations
TL;DR: The study empirically suggests that the work of controlling consumption of oil and environmentally friendly process including manufacture-trading in these economies will limit the amount of pollution.
219 citations
References
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TL;DR: In this article, the authors argue that the trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress, and that instead of simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity.
Abstract: Accepting a fixed trade-off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress. Studies finding high environmental compliance costs have traditionally focused on static cost impacts, ignoring any offsetting productivity benefits from innovation. They typically overestimated compliance costs, neglected innovation offsets, and disregarded the affected industry's initial competitiveness. Rather than simply adding to cost, properly crafted environmental standards can trigger innovation offsets, allowing companies to improve their resource productivity. Shifting the debate from pollution control to pollution prevention was a step forward. It is now necessary to make the next step and focus on resource productivity.
8,154 citations
TL;DR: The authors examined the relationship between per capita income and various environmental indicators and found no evidence that environmental quality deteriorates steadily with economic growth, rather, for most indicators, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement.
Abstract: We examine the reduced-form relationship between per capita income and various environmental indicators. Our study covers four types of indicators: urban air pollution, the state of the oxygen regime in river basins, fecal contamination of ri'ver basins, and contamination of river basins by heavy metals. We find no evidence that environmental quality deteriorates steadily with economic growth. Rather, for most indicators, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement. The turning points for the different pollutants vary, but in most cases they come before a country reaches a per capita income of $8000. I. INTRODUCTION Will continued economic growth bring ever greater harm to the earth's environment? Or do increases in income and wealth sow the seeds for the amelioration of ecological problems? The answers to these questions are critical for the design of appropriate development strategies for lesser developed countries. Exhaustible and renewable natural resources serve as inputs into the production of many goods and services. If the composition of output and the methods of production were immutable, then damage to the environment would be inextricably linked to the scale of global economic activity. But substantial evidence suggests that development gives rise to a structural transformation in what an economy produces (see Syrquin [1989]). And societies have shown remarkable ingenuity in harnessing new technologies to conserve scarce resources. In principle, the forces leading to change in the composition and techniques of production may be sufficiently strong to more than offset the adverse effects of increased economic activity on the environment. In this paper we address this empirical issue using panel data on ambient pollution levels in many countries. Examination of the empirical relationship between national income and measures of environmental quality began with our *We thank the Ford Foundation, the Sloan Foundation, the John S. Guggenheim Memorial Foundation, the Institute for Policy Reform, and the Centers of International Studies and of Economic Policy Studies at Princeton University for financial support. We are grateful to Peter Jaffee, who tutored us on the various dimensions of water quality, to Robert Bisson, who provided us with the GEMS/ Water data, and to seminar participants at the O.E.C.D. Development Centre and the Institute for International Economic Studies in Stockholm, Sweden, who gave us helpful comments and suggestions. Special thanks go to James Laity, whose research assistance was simply extraordinary.
5,582 citations
01 Jan 2015
TL;DR: The Penn World Table (PWT) as mentioned in this paper has been used to compare real GDP comparisons across countries and over time, and the PWT version 8 will expand on previous versions of PWT in three respects.
Abstract: We describe the theory and practice of real GDP comparisons across countries and over time. Effective with version 8, the Penn World Table (PWT) will be taken over by the University of California, Davis and the University of Groningen, with continued input from Alan Heston at the University of Pennsylvania. Version 8 will expand on previous versions of PWT in three respects. First, it will distinguish real GDP on the expenditure side from real GDP on the output side, which differ by the terms of trade faced by countries. Second, it will distinguish growth rates of GDP based on national accounts data from growth rates that are benchmarked in multiple years to cross-country price data. Third, data on capital stocks will be reintroduced. Some illustrative results from PWT version 8 are discussed, including new results that show how the Penn effect is not emergent but a stable relationship over time.
3,019 citations
Additional excerpts
...Data on capital stock is from the Next Generation of Penn World Table (Feenstra et al., 2013)....
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TL;DR: The relationship between economic growth and environmental quality is not fixed along a country's development path and it may change as a country reaches a level of income at which people can demand and afford a more efficient infrastructure and a cleaner environment as discussed by the authors.
Abstract: Will the world be able to sustain economic growth indefinitely without running into resource constraints or despoiling the environment beyond repair? What is the relationship between steadily increasing incomes and environmental quality? This paper builds on the author's earlier work (1993), in which he argued that the relationship between economic growth and environmental quality – whether inverse or direct -- is not fixed along a country's development path. Indeed, he hypothesized, it may change as a country reaches a level of income at which people can demand and afford a more efficient infrastructure and a cleaner environment. This implied inverted-U relationship between environmental degradation and economic growth came to be known as the "Environmental Kuznets Curve," by analogy with the income-inequality relationship postulated by Kuznets (1965, 1966). The objective of this paper is to critically review, synthesize and interpret the literature on the relationship between economic growth and environment. This literature has followed two distinct but related strands of research: an empirical strand of ad hoc specifications and estimations of a reduced form equation, relating an environmental impact indicator to income per capita; and a theoretical strand of macroeconomic models of interaction between environmental degradation and economic growth, including optimal growth, endogenous growth and overlapping generations models. The author concludes that the macroeconomic models generally support the empirical findings of the Environmental Kuznets Curve literature. He suggests further empirical investigation related to the assumption of additive separability, as well as development of additional macroeconomic models that allow for a more realistic role for government.
2,378 citations
"Economic growth, CO2 emissions, ren..." refers background in this paper
...Further, a higher GDP per capita also shows an increased capacity of an economy to allocate its resources for the purpose of environmental protection and pollution abatement (Grossman and Krueger, 1995; Pao and Tsai, 2010)....
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...Further, a higher GDP per capita also shows an increased capacity of an economy to allocate its resources for the purpose of environmental protection and pollution abatement (Grossman and Krueger, 1995; Pao and Tsai, 2010)....
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TL;DR: The three-stage least squares (3-STMLEC) method as discussed by the authors is the first method that uses the moment matrix of the structural disturbances to estimate all coefficients of the entire system simultaneously.
Abstract: In simple though approximate terms, the two-stage least squares method of estimating a structural equation consists of two steps, the first of which serves to estimate the moment matrix of the reduced-form disturbances and the second to estimate the coefficients of one single structural equation after its jointly dependent variables are “purified” by means of the moment matrix just mentioned. The three-stage least squares method, which is developed in this paper, goes one step further by using the two-stage least squares estimated moment matrix of the structural disturbances to estimate all coefficients of the entire system simultaneously. The method has full-information characteristics to the extent that, if the moment matrix of the structural disturbances is not diagonal (that is, if the structural disturbances have nonzero “contemporaneous” covariances), the estimation of the coefficients of any identifiable equation gains in efficiency as soon as there are other equations that are over-identified. Further, the method can take account of restrictions on parameters in different structural equations. And it is very simple computationally, apart from the inversion of one big matrix.
1,067 citations
"Economic growth, CO2 emissions, ren..." refers methods in this paper
...Indeed it is the combination of multivariate regression and two stage regression (Zellner and Theil, 1962)....
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