Research Article 1 46
Journal of Finance & Economics Research - Volume 7, Issue 2 2022
By Iqbal Hussain, Sareer Ahmad, Eatzaz Ahmad
10.20547/jfer2207201
Keywords: PHH, EKC, PARDL, Domestic capital, foreign capital, Carbon dioxide.

This paper investigates the existence of pollution haven hypotheses (PHH) and the Environmental Kuznets Curve (EKC) for top five (China, Canada, Germany, Brazil, And France) carbon dioxide emitter countries during 1990-2018. The current study uses a panel autoregressive distributed lag (PARDL) technique to obtain empirical outcomes. The estimated results demonstrate the error-correction term's significant and adverse impact and the system's conversion to long-run equilibrium following a shock. The results of the short run and long term indicate that carbon dioxide emissions are positively associated with EC (energy consumption) and are statistically significant. For both the short run and long run the coefficients of GDP and the square of GDP are positive and significant respectively. This endorses the EKC relationship for the panel of these countries. The forest variable indicates that the short-run result predicts that forests are negative but insignificant relation with Carbon dioxide emission, while in the long run; it shows also a negative significant association. Domestic capital is positive and significant in the short-term analysis, while in the long run association between corban dioxide emission and domestic capital is also positive and significant. The foreign capital is negative and significantly linked to Carbon dioxide emission in the long-run analysis, which rejects the pollution heaven hypothesis in these countries. Furthermore, these nations should to switch to using cleaner, more environmentally friendly energy sources, like renewable energy sources. These nations must implement policies that do not hinder national economic expansion while achieving the goal of lower carbon dioxide emissions.

Submission Date: 2 Apr, 2022 Reviews Completed: 14 Jun, 2022
Acceptance Date: 23 Jun, 2022 Publication Date: 28 Jun, 2022