Examining the pollution haven, and environmental kuznets hypothesis for ecological footprints: an econometric analysis of China, India, and Pakistan

Abstract

This paper estimates the short and long-run impact of foreign direct investment, electricity consumption, and real GDP on ecological footprints in the context of environmental Kuznets and Pollution haven hypothesis for China, India, and Pakistan over 1970–2016. Panel and time series models have been adopted in this research. Results of the cointegration test revealed the long-run association among the considered variables. Furthermore, Fully-Modified and Dynamic Ordinary Least Square validated the pollution haven and environmental Kuznets hypothesis for the study area. On the other hand, the linkages between income and ecological footprints have identified U-shaped EKC in the case of China and India. The empirical results of the Dumitrescu and Hurlin panel causality test indicated a unidirectional causality from income to ecological footprints. In contrast, bidirectional causality found between ecological footprints and foreign direct investment and between ecological footprints and electricity consumption.