Foreign direct investment, the secondary sector, and environmental degradation at a state level: A long-term estimate

The objective of this study is to analyze the relationship between equivalent carbon dioxide emissions and economic activities through the Environmental Kuznets Curve hypothesis and the Haven Pollution hypothesis for the states of Mexico, based on data from 1989 to 2018. Panel data and regression an...

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Detalles Bibliográficos
Autores: Pérez Vázquez, José Imanol, Valdés Iglesias, Edson
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2025
País:México
Institución:UNIVERSIDAD AUTÓNOMA DE YUCATÁN
Repositorio:Revista de Economía
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/530
Acceso en línea:https://revistaeconomia.uady.mx/reveco/article/view/530
Access Level:acceso abierto
Palabra clave:curva ambiental de Kuznets
econometría ambiental
gases de efecto invernadero
hipótesis del paraíso contaminante
environmental Kuznets curve
pollution haven hypothesis
environmental econometrics
greenhouse gases
Descripción
Sumario:The objective of this study is to analyze the relationship between equivalent carbon dioxide emissions and economic activities through the Environmental Kuznets Curve hypothesis and the Haven Pollution hypothesis for the states of Mexico, based on data from 1989 to 2018. Panel data and regression analysis using CS-ARDL and CS-DL were used. Gross Domestic Product, Secondary Gross Domestic Product, and foreign direct investment were used as independent variables, all measured in real per capita terms. The empirical evidence revealed an inverted "U" shaped relationship, which is why the Environmental Kuznets Curve hypothesis is accepted. The Haven Pollution hypothesis was rejected at the national level, considering the differences between the states; no relationship was found between the independent variables and emissions at the individual level for each state. This study’s originality lies in considering the dependence and heterogeneity among the states of Mexico, using second-generation econometric techniques and unexplored databases, covering a gap in the literature on regional-level studies. The main conclusion is that economic activity alone shows evidence of reducing environmental degradation, and environmental policies must consider heterogeneity among states to reduce emissions.