Environmental concerns, international transportation infrastructure and FDI

Natalia Vechiu ()
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Natalia Vechiu: ESTIA-Recherche - ESTIA - ESTIA - Institute of technology, CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université

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Abstract: In this paper we investigate the links between environmental concerns (consumers' environmental awareness, environmental regulation gap), transportation infrastructure (maritime connectivity) and FDI. We use the Greendex developed by the National Geographic as a proxy for consumers' environmental awareness and the bilateral liner shipping connectivity index developed by UNCTAD as a proxy for transportation infrastructure. On a panel of 17 developed and developing countries, we find a strong positive impact of the environmental regulation gap and the maritime connectivity as well as a strong negative impact of consumers' environmental awareness on FDI. By estimating interaction terms, we also show that the pollution heaven effect might be annulled or even reversed by "highly green" consumers and even in the presence of high maritime connectivity.

Date: 2026-06-17
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Published in AFSE Annual Congress, Jun 2026, Nantes, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05610626

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