Investigating the validity of pollution haven hypothesis in the gulf cooperation council (GCC) countriesUsama Al-mulali () and Chor Foon Tang Energy Policy, 2013, vol. 60, issue C, 813-819 Abstract: This study investigated the validity of the pollution haven hypothesis in the Gulf Cooperation Council (GCC) countries using a multivariate framework. To achieve the goal of this study, the non-stationary panel techniques were used to examine the hypothesis from 1980 to 2009. Based on the Pedroni cointegration test results, it was found that the variables are cointegrated. Moreover, the Fully Modified OLS results showed that energy consumption and GDP growth increase CO2 emission while foreign direct investment inflows have a long run negative relationship with CO2 emission. Furthermore, based on the short run Granger causality test results, FDI has no short run causal relationship with CO2 emission and energy consumption while energy consumption and GDP growth have a positive causal relationship with CO2 emission. Thus, the results of this study indicate that energy consumption and GDP growth are the source of pollution in the GCC countries and not the foreign direct investment inflows. Thus, the study recommended that these countries should utilize policies to encourage inward foreign investment since it plays an important role in stimulating GDP growth. Keywords: Foreign direct investment inflows; Energy consumption; Pollution (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:60:y:2013:i:c:p:813-819 DOI: 10.1016/j.enpol.2013.05.055 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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