Research Article

Economic Growth at the Expense of Environmental Degradation: Evidence from the Philippines

Authors

  • Coleen Joyce De Robles Department of Economics, Faculty of Arts and Letters, University of Santo Tomas, Manila, Philippines
  • Jose Rafael De Leon Department of Economics, Faculty of Arts and Letters, University of Santo Tomas, Manila, Philippines
  • Carlos Manapat Associate Professor, Department of Economics, Faculty of Arts and Letters, University of Santo Tomas, Manila, Philippines

Abstract

This study presents an empirical analysis of the impacts of three macroeconomic variables namely, Gross Domestic Product, Foreign Direct Investment, and Urban Population on the emissions of CO2 in the Philippines from the period of 1970 to 2018. The results reveal that Gross Domestic Product and Foreign Direct Investments exhibit a statistically significant relationship with CO2 emissions. The findings of this study suggest that the Philippines’ reliance on high-polluting industries as drivers of economic growth will only worsen its environmental quality. Moreover, its weak environmental laws provide foreign investors the opportunity to exploit the environment in exchange for FDI inflows to the country. Furthermore, the results of this study support the scale effect in the Environmental Kuznets Curve hypothesis, as well as the Pollution Haven Hypothesis.

Article information

Journal

Journal of Economics, Finance and Accounting Studies

Volume (Issue)

3 (2)

Pages

269-287

Published

2021-12-31

How to Cite

De Robles, C. J., De Leon, J. R., & Manapat, C. (2021). Economic Growth at the Expense of Environmental Degradation: Evidence from the Philippines. Journal of Economics, Finance and Accounting Studies, 3(2), 269–287. https://doi.org/10.32996/jefas.2021.3.2.25

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Keywords:

CO2 Emissions, Environmental Kuznets Curve, Pollution Haven Hypothesis, Philippines, Economic Growth, Foreign Direct Investment, Urbanization