Open AccessEconomic Growth at the Expense of Environmental Degradation: Evidence from the Philippines
Author(s) -
Coleen Joyce De Robles,
Jose Rafael De Leon,
Carlos L. Manapat
Publication year - 2021
Publication title -
journal of economics, finance and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2709-0809
DOI - 10.32996/jefas.2021.3.2.25
Subject(s) - foreign direct investment , kuznets curve , environmental degradation , pollution haven hypothesis , gross domestic product , economics , environmental quality , environmental pollution , population , product (mathematics) , haven , exploit , international economics , natural resource economics , macroeconomics , economic growth , environmental protection , geography , ecology , demography , geometry , mathematics , computer security , combinatorics , sociology , political science , computer science , law , biology
This study presents an empirical analysis of the impacts of three macroeconomic variables namely, Gross Domestic Product, Foreign Direct Investment, and Urban Population on the emissions of CO2 in the Philippines from the period of 1970 to 2018. The results reveal that Gross Domestic Product and Foreign Direct Investments exhibit a statistically significant relationship with CO2 emissions. The findings of this study suggest that the Philippines’ reliance on high-polluting industries as drivers of economic growth will only worsen its environmental quality. Moreover, its weak environmental laws provide foreign investors the opportunity to exploit the environment in exchange for FDI inflows to the country. Furthermore, the results of this study support the scale effect in the Environmental Kuznets Curve hypothesis, as well as the Pollution Haven Hypothesis.