Sustainable Green Trade in Asian Trading Nations: Panel Data Evidence on the Environmental Kuznets Curve, Pollution Haven Hypothesis, and Technique Effects
DOI:
https://doi.org/10.54938/ijemdss.2026.05.5.862Keywords:
Environmental Kuznets Curve, Pollution Haven hypothesis, Green Export hypothesis, CO2 emissions, Panel regressionAbstract
Using two way fixed effect panel regression, we analyze the probable trends of sustainable green trade for the 20 largest Asian trading countries for the period 2000-2022. Using 460 country-year observations, we test three hypotheses related to international trade: the Environmental Kuznets Curve (EKC), the Pollution Haven hypothesis, and the Green Export hypothesis. We generate our models based on the logs of per capita CO2 emissions for the first four models and a model based on renewable energy. Results showed the income turning point for the EKC hypothesis was found at approximately $18,604, and a statistically significant relationship was found between income and CO2 emissions beyond that point. Results showed a statistically significant positive relationship between FDI and CO2 emissions, therefore providing partial evidence for the Pollution Haven hypothesis. Lastly, the Green Export hypothesis was supported by the results of the sample where a negative relationship between the intensity of green exports and CO2 emissions was found at the 1% level, as well as the sample where the intensity of renewable energy was negatively related to CO2 emissions at the 5% level. Overall, the results illustrate that more developed economies in East Asia are moreprogressed in the Global Green Transition. While advanced economies in East Asia are the first movers in the clean-technology market, labour-intensive economies in South and Southeast Asia are exposed to two streams: pollution haven and carbon-border regulation.
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