Abstract
The purpose of this study is to investigate the major factors in the process of economic growth that influence the carbon dioxide (CO2) emission in Vietnam. An Autoregressive Distributed Lag (ARDL) model was used to evaluate the impact based on Environmental Kuznets curve (EKC) and Pollution haven hypothesis (PHH) in 1990–2011. The results indicate that the economic growth, energy consumption, financial development and trade openness positively influence the CO2 emissions, whereas foreign direct investment has a negative impact in the short term. Coefficient of joining ASEAN is not statistically significant. The findings of this study also support the validity of EKC and PHH in the Vietnamese economy. Therefore, it is important to use green energy, examine requirements for foreign investment and adopt trade-related measures and policies to increase environmental protection.
Highlights
Vietnam has been considered as one of the countries that enjoy the fastest economic growth rate of around 6 percent between 2010 and 2015 (Statistical yearbook of Vietnam, 2016)
The primary aim of this study is to examine the effects of the economic growth, energy consumption, foreign direct investment, trade openness, financial development, and participation in ASEAN on CO2 emissions in Vietnam
The results of this study show that while the Environmental Kuznets curve (EKC) hypothesis only exists in the long term, the Pollution haven hypothesis (PHH) hypothesis occurs in Vietnam in both a short and a long term
Summary
Vietnam has been considered as one of the countries that enjoy the fastest economic growth rate of around 6 percent between 2010 and 2015 (Statistical yearbook of Vietnam, 2016). Like other countries in the world, this growth is usually accompanied by the significant increase in energy consumption and environmental problems, for example, CO2 emissions (Balibey, 2015; Linh & Lin, 2014). The fact that Vietnam became a member of The World Trade Organization in 2006 means that it has to fulfill a range of commitments on opening markets, which considerably affects its economy and environment. In this context, it is important to clarify factors affecting the environment. The primary aim of this study is to examine the effects of the economic growth, energy consumption, foreign direct investment, trade openness, financial development, and participation in ASEAN on CO2 emissions in Vietnam.
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