Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

There is much discussion on the non-linear relationship between economic growth and carbon dioxide (CO2) emissions. Additionally, effects of Foreign Direct Investment (FDI) environment are ambiguous, as both beneficial (i.e., pollution-halo) harmful pollution-haven) were found. Therefore, literature presents no consensus either these topics. This especially problematic for developing regions, regions represent growing economies interested in receiving foreign investments, their CO2-related research limited. study aims to understand impacts FDI CO2 emissions São Paulo state, Brazil. To perform this study, a unique dataset regional was built, 592 municipalities included. The analyses combine linear estimations, results suggest Gross Domestic Product (GDP) per capita emissions, along with negative association CO2. Finally, discusses possible policy implications contributes international literature.