ADRI's Fatima Tehreem recently has published a paper entitled “The impact of energy consumption to environmental sustainability: an extension of foreign direct investment induces pollution in Vietnam” in International Journal of Energy Sector Management. Fatima is the first author of this paper.
The study investigates the validity of the N-shape EKC hypothesis in Vietnam because of its significant economic development during the past decade. The study aimed to assess the EKC hypothesis following the ecological footprint perspective.
By introducing ecological footprint is an important contribution in our study, which ignore in previous literature. Most studies emphasize the importance of CO2 emissions as a climate variable for environmental impact assessment and in the EKC theory, which accounts for only a small part of the overall environmental deterioration. The ecological footprint will offer a more detailed view Of disruption to the climate. Therefore, the main objective of the study is to analyze the relationship between ecological footprints and FDI, international tourism arrivals, energy usage, and water resources in Vietnam, which has rarely been explored.
The purpose of this study aimed to assess the Environmental Kuznets Curve hypothesis following the ecological footprint perspective with a data set covering the period 1995–2018. It is well-established that anthropogenic human activities are the root cause of environmental deterioration. To this end, the current study is fitted in a multivariate framework to ameliorate for omitted variable bias for the data set from 1995–2018 on a quarterly frequency using the autoregressive distributive lag methodology. Subsequently, the stationarity status of the study underlines series were examined with a conventional unit root test and the Pesaran’s bounds test for cointegration analysis.
Empirical evidence from the bounds test to cointegration traces the co-integration relationship between ecological footprint, conventional energy use, foreign direct investment, international tourism arrival, and water resources over the sampled period. The study, in the long run, affirms the N-shaped relationship between ecological footprint and foreign direct investment in Vietnam. Additionally, the present study validates the hypothesis of energy consumption-induced pollution emissions. The relationship between international tourism arrival and the quality of the environment is statistically positive in both the short-run and long-run.
This study provides useful policy implications that Vietnamese policymakers may need to take into consideration to draft effective environmental policies to combat global warming while stimulating economic growth at the same time.
Full text: https://www.emerald.com/insight/content/doi/10.1108/IJESM-01-2021-0001/full/html