The Impact of FDI on CO₂ Emissions in Latin America

Authors

Luisa Blanco, Pepperdine UniversityFollow
Fidel Gonzalez, Sam Houston State University
Isabel Ruiz, University of Oxford

Document Type

Article

Publication Date

2011

Abstract

This paper uses panel Granger causality tests to study the relationship between sector specific FDI and CO₂ emissions. Using a sample of 18 Latin American countries for the 1980-2007 period, we find causality running from FDI in polluting intensive industries (“the dirty sector”) to CO₂ emissions per capita. This result is robust to controlling for other factors associated with CO₂ emissions and using the ratio of CO₂ emissions to GDP. For other sectors, we find no robust evidence that FDI causes CO₂ emissions.

Recommended Citation

Blanco, Luisa; Gonzalez, Fidel; and Ruiz, Isabel, "The Impact of FDI on CO₂ Emissions in Latin America" (2011). Pepperdine University, School of Public Policy Working Papers. Paper 28.
https://digitalcommons.pepperdine.edu/sppworkingpapers/28