orting findings of FDI inflows’ impact on water pollution
A study by Ding, Tang, & He, (2019) supported the existence of a negative relationship between FDI inflows and water pollution by stating that FDI inflows increase water utilization efficiency. However, the intensity of the effect of FDI inflows on water pollution is not very high. He further added that the existence of environmental regulation is the major reason for this relationship. Apart from environmental regulation, technological upgradations, and innovation to contribute to improving the efficiency of water treatment technologies which in turn increase the utilization efficiency of water. Hence, growth does not always contribute to the degradation of the environment. With the enhancement in technological innovations and environmental regulations, a positive relationship between growth and environment could be seen.
The analysis suggests that an increase in FDI inflows in India for the period of 2002-2017 lead to an improvement in water efficiency. With the presence of environmental regulations, more technological upgradations, and other factors, FDI inflows contributed to reducing the water pollution level in the country by reducing the water temperature level. Though still, the water temperature level is very high i.e. close to 24°C as compared to an optimal level of 15°C.
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