A new look at the FDI income energy environment nexus: Dynamic panel data analysis of ASEAN
The main focus of this paper is to estimate the effects of foreign direct investment (FDI) inflows, income and energy consumption on CO2 emissions using panel data of five ASEAN countries over 1981 2010. The results based on the pooled mean group (PMG) estimator of dynamic panels show that FDI tends to increase CO2 emissions, supporting evidence of the pollution haven hypothesis. We also find that income and energy consumption have a detrimental impact on reducing CO2 emissions.