Have environmental regulations restrained FDI in China? New evidence from a panel threshold model.

This paper aims to investigate the effect of environmental regulations on inward foreign direct investment in China. For this purpose, a panel threshold model was constructed to assess the threshold effects of environmental regulations on the influx of foreign direct investments (FDI) . The findings indicate that, under the influence of human capital, the impact of environmental regulations on FDI in China was characterized by a V-shaped curve, indicating an initial inhibitory effect followed by a subsequent increase. A plausible explanation is that specific pollution-generating FDI must withdraw from China because of stringent environmental regulations before human capital reaches a certain threshold level. Meanwhile, impaired by the adverse selection effect, some cleaner-production FDI cannot easily enter China. As a result, environmental regulations in this stage have an inhibitory effect on FDI in China. However, part of the pollution-generating FDI is converted into cleaner production after the human capital level reaches the threshold limit. Further, due to the positive selection effect, additional cleaner-production FDI can also enter China from different destinations. At this stage, environmental regulations boost overall FDI entering China.

Unraveling the role of China's OFDI, institutional difference and B&R policy on energy efficiency: a meta-frontier super-SBM approach.

Under the Belt and Road initiative, the cooperative network between Chinese firms and participating countries has evolved rapidly to seek new markets for foreign investment. Foreign investment is one of the most effective ways of improving environmental energy efficiency through technology spillover. Therefore, first, this article applies the foreign direct investment theory with an interactive effect of institutional difference on energy efficiency. We employed the meta-frontier super-slacks-based measure approach to find the sampled countries' environmental energy efficiency. We also divided the study sample into six regions to consider group heterogeneity and the variation in energy efficiency performance in various Belt and Road regions. For the empirical investigation, we applied the generalized method of moments approach. The impact of China's outward foreign direct investment on energy efficiency is positive in the full sample. Nevertheless, the region-wise study found mixed results regarding China's outward foreign direct investment to promote energy efficiency and the Belt and Road region. In addition, the study further infers that institutional distance can be the greater impediment to promoting host countries' efficient energy-based investment.

An empirical investigation of nuclear energy and environmental pollution nexus in India: fresh evidence using NARDL approach.

Environmental pollution caused by carbon emissions is an emerging issue to study among researchers. The nexus between environmental pollution and carbon emissions has motivated researchers to evaluate the impact of cleaner energy on carbon emissions. This study further contributes to the research by examining the above relationship by studying the asymmetric influence of nuclear energy (NE), industrial productivity (IP), and economic growth rate (GDP) on carbon emissions (CO2) in India from 1975 to 2018 using the asymmetric autoregressive distribution lag approach. The results of the bound test and the Wald test show that in the long run, there is an asymmetric relationship between CO2, NE, GDP, and IP, and in the short run, there is a symmetric relationship between CO2, GDP, and IP. The result implies that increased usage of nuclear energy over fossil fuels and improvement in industrial productivity, in the long run, reduces CO2 emission in India. Furthermore, the study concludes that the government should consider the asymmetric relationship between the variables and devise appropriate policies to increased nuclear energy and industrial productivity in India for environmental sustainability.

The impact of trade on energy efficiency in the global value chain: A simultaneous equation approach.

Fostering energy efficiency is one of the most effective ways to sustain economic growth while addressing climate change and limiting emissions. On the other hand, the pattern of international trade has changed many folds. The present study quantified the value-added trade (VAT) and developed a simultaneous equation model to empirically analyze the impact of value-added trade on energy efficiency in the global value chains (GVC). The Super-SBM model is used to estimate energy-efficiency. Empirical results indicate that India, Brazil, USA, Poland, France, Turkey, Israel, Italy are super-energy efficient, as their efficiency score is greater than 1. Secondly, value-added trade significantly improves energy efficiency by 0.434 after controlled the time and country effects. In addition, trade is divided into value-added exports and value-added imports to describe the internal trade mechanism, which depicts that the magnitude of the energy efficiency effect of value-added exports (0.011) is greater than that of imports (0.009). The findings also suggest that investment in R&D, foreign investment, and human education significantly improves energy efficiency. Foreign direct investment (FDI) positively increases the energy efficiency after controlled the unobserved fixed effects of country and year. It reflects the importance of the technology diffusion on increasing energy efficiency through FDI. Additionally, political regimes have also major impacts on both energy efficiency and value-added trade.

The effects of urbanization on household wastewater emissions in China: Efficient- and inefficient- emissions.

While considerable efforts have been made to address the relationship between urbanization and environmental issues, few of them focus on household emissions. Thus, this work aimed at evaluating the effect of urbanization on household wastewater emissions, and made a distinction between the efficient- and the inefficient-emissions. We compiled a China's provincial dataset over the period 2005-2017, and estimates indicated that a 1% rise in the urbanization was correlated with a 0.581 increase of efficient emissions, while inefficient emissions decreased by 7.606. As of 2017, the sample period end year, the inefficient emissions accounted for 10.5% of the total emissions of China as a whole, which was relatively large and could not be overlooked. Meanwhile, a back-of-the-envelope estimate revealed that urbanization had a negative impact on China's total emissions, with a marginal effect ranging from -0.226 to -1.354 over the sample period. The above findings, however, did not imply that urbanization would spontaneously reduce the inefficient- and total-emissions. Thus, the government in the process of urbanization should strengthen environmental education, municipal facilities, and others.

Inequalities by energy sources: An assessment of environmental quality.

Energy demand is rising day by day, driven mainly by the development of countries. At the same time, uneven economic growth in countries is the prime cause of inequality in energy consumption. Keeping in view the worth of energy in the growth process, this study quantifies the impact of energy inequalities and trade on environmental quality over the period 1995-2018 for 57 countries. The Theil approach is used to quantify inter-and intra-regional disparities in five energy sources; oil, coal, natural gas hydroelectricity, and renewable energy. The results show that North America has the highest oil consumption inequality between the regions while East Asia & Pacific has the highest index value within the regions. Coal consumption inequality is declining in North America, but not in East Asia and the Pacific. Europe & Central Asia, and North America have the highest inequalities in natural gas consumption between the regions. Inequality is shrinking in hydropower consumption between the regions, however, such trend has not loomed within the regions. Europe & Central Asia and East Asia & Pacific have major renewable consumption inequalities within the regions. Generally, there is a decreasing temporal trend in energy consumption inequalities of all energy sources. The GMM technique is applied to investigate the impact of energy inequalities and trade openness on environmental quality. The results reveal that energy inequalities degrade environmental quality. Moreover, trade has a positive impact on environmental quality. However, democratic countries can be advantageous to improve the environmental quality. The study implies that countries should take actions to reduce energy inequalities within and between the regions. Specialization in production through trade can also be an option for improvement in the environment.

Urbanization and energy consumption effects on carbon dioxide emissions: evidence from Asian-8 countries using panel data analysis.

The developing world is facing pivotal challenges in recent times. Among these, global warming has ominous repercussions on every segment of society, thus tracing its underlying causes is imperative. This research attempts to investigate the impact of urbanization and energy consumption on carbon dioxide emissions (CO2) for a panel of 8 Asian countries (Bangladesh, China, India, Indonesia, Malaysia, Nepal, Pakistan, and Sri Lanka) over the period 1982 to 2017. The analyses are executed using panel co-integration and Granger causality techniques. The main findings of panel co-integration reveal a long-run relationship between urbanization, energy consumption, and CO2 emissions. Furthermore, the results indicate a positive and significant impact of urbanization and energy consumption on CO2 emissions, indicating that urban development and high energy consumptions are barriers to improve environmental quality in the long run. The results also highlight bi-directional causality between energy consumption and urbanization, while unidirectional causality exists between energy consumption and CO2 emissions. Based on the obtained results, this study offers useful policy implications for plummeting carbon emissions.