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Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment?

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  • Dinda, Soumyananda

Abstract

The economic literature on trade and environment seeks empirically test hypotheses about how trade affects the environment that is crucial for resolving current policy debates. Applying panel data technique we examine the impacts of globalization on pollution level, pollution intensity and relative change of pollution for the developed (OECD) and developing (Non-OECD) country groups and the world as a whole. This paper examines the factor endowment and pollution haven hypotheses that predict how trade affects the environment. Interaction effects also play a crucial role to determine the impact of globalization on environment. In this study we use CO2 emission and observe that the impact of globalization on environment heavily depends on the basic characteristics of a country and its dominating comparative advantage. The empirical results suggest that globalization increases CO2 emission, which is the main culprit of the global warming.

Suggested Citation

  • Dinda, Soumyananda, 2006. "Globalization and Environment: Can Pollution Haven Hypothesis alone explain the impact of Globalization on Environment?," MPRA Paper 50590, University Library of Munich, Germany, revised 15 Oct 2006.
    • Handle: RePEc:pra:mprapa:50590
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    Cited by:

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    2. Shahbaz, Muhammad & Mallick, Hrushikesh & Kumar, Mantu & Loganathan, Nanthakumar, 2015. "Does Globalization Impede Environmental Quality in India?," MPRA Paper 67285, University Library of Munich, Germany, revised 15 Oct 2015.
    3. Shahbaz, Muhammad, 2019. "Globalization-Emissions Nexus: Testing the EKC hypothesis in Next-11 Countries," MPRA Paper 93959, University Library of Munich, Germany, revised 13 May 2019.
    4. Audi, Marc & Ali, Amjad, 2018. "Determinants of Environmental Degradation under the Perspective of Globalization: A Panel Analysis of Selected MENA Nations," MPRA Paper 85776, University Library of Munich, Germany.
    5. Bataka, Hodabalo, 2021. "Globalization and Environmental Pollution in Sub-Saharan Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    6. Muhammad Umer Author_Email: mohd.umer@gmail.com & M. Farooq Hussain & Miss Hanniya Abid, 2011. "Facing Challenges In The Global Environment: A Study Of International Business Transformation," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-206, Conference Master Resources.
    7. Muhammad Shahbaz, 2022. "Globalization–Emissions Nexus: Testing the EKC Hypothesis in Next-11 Countries," Global Business Review, International Management Institute, vol. 23(1), pages 75-100, February.
    8. Nela Vlahinić Lenz & Barbara Fajdetić, 2022. "Does Economic Globalisation Harm Climate? New Evidence from European Union," Energies, MDPI, vol. 15(18), pages 1-17, September.
    9. Natalia Zugravu-Soilita, 2017. "How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 293-338, February.
    10. Ning Chang, 2012. "The empirical relationship between openness and environmental pollution in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(6), pages 783-796, August.

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    More about this item

    Keywords

    Globalization; pollution haven hypothesis; factor endowment hypothesis; and interaction effect;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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