Analysis Of Pollution Haven Hypothesis In World Trade Organization Member Countries

Abstract

The threat of climate change, justice and also inequality are subjective proxies in the Sustainable
Development Goals (SDGs). Likewise with free trade carried out by every country in the world to meet the needs
of society. Free trade began to appear when the rounds at the World Trade Organization (WTO) in Dohaaimed to
remove trade distortions in the international trade regime, so as to encourage an increase in world trade. The
race of countries in the world to pursuewealth and prosperity has several impacts on the environment, one of
which is global warming caused by greenhouse gases. The main greenhouse gas thatcontinues to increase is
carbon dioxide. The purpose of this study is to analyze the Pollution Haven Hypothesis (PHH) model in explaining
the relationship between foreign investment, trade openness, income per capita, renewable energy consumption,
non-renewable energy consumption and urban population on the environmental quality of WTO member
countries. This research is an associative quantitative research conductedon WTO members with a sample size of
108 countries. Data collection was obtainedthrough the World Bank Index which was then analyzed using the
Autoregressive Distributed Lag (ARDL) method. The results of the study showthat the Pollution Haven Hypothesis
model notoccurs in WTO member. However, in the long run the investment has a reduced emission impact on the
host country. This is proof of the existence of the Halo Pollution Hypothesis.