Abstract
Over the last three decades, the relationship between growth, foreign direct investment and carbon emissions has become an important issue among environmental economists. The target of this study is to investigate the impact of economic growth and foreign direct investment on carbon emissions in order to provide environmental improvement suggestions. This study tests the validity of the Environmental Kuznets Curve (EKC) hypothesis, including G7 countries (Canada, United State, United Kingdom, Japan, France, Germany, Italy) and BRICS countries (Brazil, Russia, India, China and South Africa) for the period of 1992–2014. We adopt a panel quantile regression model that takes unobserved individual heterogeneity and distributional heterogeneity into consideration. Moreover, to avoid an omitted variable bias, certain related control variables are included in our model. Firstly, our empirical results show that the effect of the independent variables on carbon emissions is heterogeneous across quantiles. Secondly, regarding the impact of FDI on carbon emissions, we find that these results support the pollution halo theory in G7 countries and support the pollution haven hypothesis in BRICS countries. Thirdly, the empirical findings are in support of inverted U-shaped curve of EKC in G7 countries. Finally, the results of the study also provide policymakers with important policy recommendations. In addition, our findings suggest carbon emissions control measures should be tailored differently across low-emissions and high-emissions nations.
Supported by Puey Ungphakorn Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Lee, C.C., Chang, C.P.: FDI, financial development, and economic growth: international evidence. J. Appl. Econ. 12(2), 249–271 (2009)
Grossman, G.H., Krueger, A.B.: Economic growth and the environment. J. Public Econ. 57(1), 85–101 (1995)
Khan, S.A.R., Zaman, K., Zhang, Y.: The relationship between energy-resource depletion, climate change, health resources and the environmental Kuznets curve: evidence from the panel of selected developed countries. Renew. Sustain. Energy Rev. 62, 468–477 (2016)
He, J., Richard, P.: Environmental Kuznets curve for \(CO{_{2}}\) in Canada. Ecol. Econ. 69(5), 1083–1093 (2010)
Zhu, H.M., Duan, L.J., Guo, Y.W., Yu, K.M.: The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: evidence from panel quantile regression. Econ. Model. 58, 237–248 (2016)
Acaravci, A., Ozturk, I.: On the relationship between energy consumption, \(CO{_{2}}\) emissions and economic growth in Europe. Energy 35(12), 5412–5420 (2010)
Zeng, K., Eastin, J.: Do developing countries invest up? The environmental effects of foreign direct investment from less-developed countries. World Dev. 40(11), 2221–2233 (2012)
Pao, H.T., Tsai, C.M.: Multivariate Granger causality between \(CO{_{2}}\) emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy 36(1), 685–693 (2011)
Zarsky, L.: Havens, halos and spaghetti: untangling the evidence about foreign direct investment and the environment. Foreign Direct Invest. Environ. 13, 47–74 (1999)
Antonakakis, N., Chatziantoniou, I., Filis, G.: Energy consumption, \(CO{_{2}}\) emissions and economic growth: an ethical dilemma. Renew. Sustain. Energy Rev. 68, 808–824 (2017)
Koenker, R., Bassett, G.J.: Regression quantiles. Econometrica 46, 33–50 (1978)
Maddala, G.S., Wu, S.: A comparative study of unit root tests with panel data and a new simple test. Oxf. Bull. Econ. Statement 61(S1), 631–652 (1999)
Pesaran, M.H.: A simple panel unit root test in the presence of cross-section dependence. J. Appl. Econ. 22(2), 265–312 (2007)
Alam, M.M., Murad, M.W., Noman, A.H.M., Ozturk, I.: Relationships among carbon emissions, economic growth energy consumption and population growth: testing environmental Kuznets curve hypothesis for Brazil, China, India and Indonesia. Ecol. Indic. 70, 466–479 (2016)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this paper
Cite this paper
Zhou, Y., Sirisrisakulchai, J., Liu, J., Sriboonchitta, S. (2019). Factors Affecting Carbon Emissons in the G7 and BRICS Countries: Evidence from Quantile Regression. In: Seki, H., Nguyen, C., Huynh, VN., Inuiguchi, M. (eds) Integrated Uncertainty in Knowledge Modelling and Decision Making. IUKM 2019. Lecture Notes in Computer Science(), vol 11471. Springer, Cham. https://doi.org/10.1007/978-3-030-14815-7_34
Download citation
DOI: https://doi.org/10.1007/978-3-030-14815-7_34
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-14814-0
Online ISBN: 978-3-030-14815-7
eBook Packages: Computer ScienceComputer Science (R0)