Purpose

In this paper, we use empirical models to examine the main channel through which FDI escalates environmental risk. We explore whether countries with “weak” or better still low tax rate attract “dirty” FDI to deteriorate their environment

Design/methodology/approach

The analysis uses a 40-year panel to show that foreign direct investment (FDI) and tax policy matter in accounting for cross-country environmental risk.

Findings

Our sample finds support that the tax channel is the main medium through which FDI worsens environmental risk. By discomposing tax policy into low and high regimes, we report that countries that deliberately reform tax policy to bait FDI have higher environmental risk.

Social implications

A useful lesson from here is that using tax policy to lure FDI amounts to shortchanging capital risk for environmental risk.

Originality/value

The paper is unique because it identifies tax policy as a channel through which FDI affects the environment in Africa. Other studies overly simplifies the relationship between FDI and its impact on the environment, and it makes it difficult and ambiguous in offering specific policy direction.

中文翻译：

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环境风险，外国直接投资和税制改革：为什么我们必须担心

目的

在本文中，我们使用经验模型来检验外国直接投资提升环境风险的主要渠道。我们探索税率“弱”或更好但仍然较低的国家是否吸引“肮脏”外国直接投资以恶化其环境

设计/方法/方法

该分析使用了40年的专家组来表明，外国直接投资（FDI）和税收政策对跨国环境风险的会计处理至关重要。

发现

我们的样本支持税收渠道是外国直接投资恶化环境风险的主要手段。通过将税收政策分解为高低体制，我们报告说，故意改革税收政策以吸引外国直接投资的国家具有较高的环境风险。

社会影响

从这里有用的教训是，使用税收政策引诱外国直接投资等于使资本风险与环境风险相比有所减少。

创意/价值

该文件之所以独特，是因为它将税收政策确定为外国直接投资影响非洲环境的渠道。其他研究过度简化了外国直接投资与其对环境的影响之间的关系，这使得在提供具体的政策方向时既困难又含糊。