An Empirical Investigation between FDI, Tourism, and Trade on CO2 Emission in Asia: Testing Environmental Kuznet Curve and Pollution Haven Hypothesis

<jats:p>This study aims to analyze the influence of foreign direct investment, tourism, exports, and imports on carbon dioxide (CO2) emissions in the High-Income State, Upper-Middle Income, and Lower-Middle-Middle Income in Asia during the period of 2010 to 2019. This study uses the Poisson Pseudo-Maximum Likelihood (PPML) method. The results of this study indicate that Environmental Kuznets Curve Hypothesis (EKC) is valid in the country of High Income and Upper-Middle Income. In addition, there is a non-linear relationship between foreign direct investment (FDI), tourism, Export, and imports on carbon dioxide (CO2) emissions. The interaction variables, which are a foreign direct investment with tourism and foreign direct investment with Export. Each of them is reducing carbon dioxide emissions only in high-income countries. Meanwhile, the interaction variables between foreign direct investment and imports reduce carbon dioxide emissions in high-income countries. However, it increases the carbon dioxide emissions in the upper-middle-income country</jats:p>