Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America
TL;DR: In this paper, the effects of foreign direct investment (FDI) and income on pollution emissions were examined using time series data from 1980 to 2010 for 14 Latin American countries, specifically, the validity of Pollution Haven Hypothesis and Environmental Kuznets Curve (EKC) hypothesis for this region.
About: This article is published in Energy Economics.The article was published on 2017-05-01. It has received 376 citations till now. The article focuses on the topics: Environmental pollution & Pollution haven hypothesis.
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TL;DR: A theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification.
Abstract: Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.
4,284Â citations
TL;DR: A survey of the empirical literature on Environmental Kuznets Curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991-2017 can be found in this paper.
Abstract: This paper provides a survey of the empirical literature on Environmental Kuznets Curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991-2017. This survey categorizes the studies on the basis of single country and cross-country contexts. It has been hypothesized that the EKC is an inverted U-shaped association between economic growth and CO2 emissions. For both single country and cross-country contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation. The future studies in this context should not only consider new set of variables (e.g., corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment towards alternate energy exploration, etc.), but also the dataset should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed.
374Â citations
TL;DR: The findings disclose that globalization is not a significant determinant of the ecological footprint; however, it significantly increases the ecological carbon footprint.
Abstract: This study focuses to investigate the relationship between globalization and the ecological footprint for Malaysia from 1971 to 2014. The results of the Bayer and Hanck cointegration test and the ARDL bound test show the existence of cointegration among variables. The findings disclose that globalization is not a significant determinant of the ecological footprint; however, it significantly increases the ecological carbon footprint. Energy consumption and economic growth stimulate the ecological footprint and carbon footprint in Malaysia. Population density reduces the ecological footprint and carbon footprint. Further, financial development mitigates the ecological footprint. The causality results disclose the feedback hypothesis between energy consumption and economic growth in the long run and short run.
263Â citations
Cites background from "Foreign direct investment, income, ..."
...Sapkota and Bastola (2017) suggest that population density increases pollution level because in densely populated areas pollution-intensive plants are less viable and less likely to be opposed....
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TL;DR: In this article, the authors estimate the environmental Kuznets curve in the case of France by taking the role of nuclear energy in electricity production into account, and examine the stability of the estimated models and investigate the Granger causality relationships between the variables in the system.
Abstract: This paper attempts to estimate the environmental Kuznets curve (EKC) in the case of France by taking the role of nuclear energy in electricity production into account. We adopt the autoregressive distributed lag (ARDL) approach to cointegration as the estimation method. Additionally, we examine the stability of the estimated models and investigate the Granger causality relationships between the variables in the system. The results from our estimation provide evidence supporting the EKC hypothesis and the estimated models are shown to be stable over the sample period. The uni-direction running from other variables to CO2 emissions are confirmed from the casualty tests. Specifically, the uni-directional causality relationship running from nuclear energy to CO2 emissions statistically provides evidence on the important role of nuclear energy in reducing CO2 emissions.
258Â citations
TL;DR: In this article, the authors employed an autoregressive distributed lag model and the vector error correction model to analyze the cointegration and direction of causalities between human capital and carbon emissions, respectively.
252Â citations
References
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TL;DR: In this article, the null hypothesis of no misspecification was used to show that an asymptotically efficient estimator must have zero covariance with its difference from a consistent but asymptonically inefficient estimator, and specification tests for a number of model specifications in econometrics.
Abstract: Using the result that under the null hypothesis of no misspecification an asymptotically efficient estimator must have zero asymptotic covariance with its difference from a consistent but asymptotically inefficient estimator, specification tests are devised for a number of model specifications in econometrics. Local power is calculated for small departures from the null hypothesis. An instrumental variable test as well as tests for a time series cross section model and the simultaneous equation model are presented. An empirical model provides evidence that unobserved individual factors are present which are not orthogonal to the included right-hand-side variable in a common econometric specification of an individual wage equation.
16,198Â 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.
5,582Â citations
Book•
01 Jan 1993
TL;DR: In this paper, the authors propose a nonlinear regression model based on the Gauss-Newton Regression for least squares, and apply it to time-series data and show that the model can be used for regression models for time series data.
Abstract: 1. The Geometry of Least Squares 2. Nonlinear Regression Models and Nonlinear Least Squares 3. Inference in Nonlinear Regression Models 4. Introduction to Asymptotic Theory and Methods 5. Asymptotic Methods and Nonlinear Least Squares 6. The Gauss-Newton Regression 7. Instrumental Variables 8. The Method of Maximum Likelihood 9. Maximum Likelihood and Generalized Least Squares 10. Serial Correlation 11. Tests Based on the Gauss-Newton Regression 12. Interpreting Tests in Regression Directions 13. The Classical Hypothesis Tests 14. Transforming the Dependent Variable 15. Qualitative and Limited Dependent Variables 16. Heteroskedasticity and Related Topics 17. The Generalized Method of Moments 18. Simultaneous Equations Models 19. Regression Models for Time-Series Data 20. Unit Roots and Cointegration 21. Monte Carlo Experiments
4,912Â citations
Posted Content•
TL;DR: This article examined the relationship between various environmental indicators and the level of a country's per capita income 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: Using data assembled by the Global Environmental Monitoring System we examine the reduced-form relationship between various environmental indicators and the level of a country's per capita income. Our study covers four types of indicators: concentrations of urban air pollution; measures of the state of the oxygen regime in river basins; concentrations of fecal contaminants in river basins; and concentrations of heavy metals in river basins. 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 $8,000.
4,300Â citations
Posted Content•
TL;DR: A theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification.
Abstract: Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.
4,284Â citations