Foreign Direct Investment Dependence and the Neglected Greenhouse Gas: A Cross-National Analysis of Nitrous Oxide Emissions in Developing Countries, 1990–2014

Abstract

Scholars have long inquired the anthropogenic causes of greenhouse gas emissions. The majority of empirical work focuses on carbon dioxide and methane emissions, but limited attention is paid to nitrous oxide emissions. This is a crucial omission as nitrous oxide emissions are an extremely potent greenhouse gas and trigger ozone-depleting reactions upon reaching the atmosphere. Using a fixed effects panel regression of 106 developing countries, I estimate the effect of foreign direct investment dependence on nitrous oxide emissions. I find foreign capital dependency is positively associated with nitrous oxide emissions, supporting a refined ecostructural theory of foreign direct investment dependence. This analysis highlights the need for social scientists to consider the environmental impacts of the transnational organization of production beyond carbon dioxide emissions and methane emissions.