In this study we aim to test the effects of foreign direct investment (FDI) on carbon emissions (CO₂) in 20 Latin American countries during the period of 1990–2018. Based on the atlas method of the World Bank, we divided the countries into three groups according to their real gross national income per capita: high-income, upper-middle-income and lower-middle-income countries. We used cointegration techniques and causality tests to evaluate the relationship between the variables. To assess the strength of the cointegration vector, we applied the dynamic ordinary least squares (DOLSs) model for individual countries and the dynamic panel ordinary least squares (PDOLSs) model for groups of countries. The results suggest that the entry of FDI into Latin American (LA) countries increases CO₂ emissions, affecting the environmental quality. These findings disagree with the environmental Kuznets curve (EKC) hypothesis but, in contrast, they are in line with the pollution haven hypothesis (PHH). Moreover, we show evidence in long-term equilibrium relationship between FDI input and CO₂ emissions, which is not the case for the short-term equilibrium. Some additional results suggest that FDI flows do not cause the CO₂ emissions in LA countries. The empirical findings suggest policymakers to design policies to “the second-best theory”, targeting FDI flows to their economies to solve economic problems in the short term, but thereafter they may guarantee the reduction in environmental pollution, based on environmentally responsible FDI and stronger regulations. In other words, the transition from a pollution haven to the applicability of the environmental Kuznets curve (EKC). This study contributes with scarce empirical evidence for LA countries in this issue.

The tourism sector is growing rapidly, and this has greatly stimulated economic growth around the world; however, the environmental degradation that this implies cannot be ignored. In order to achieve sustainable tourism, it is important to study the link between tourism and environmental quality. Therefore, the objective of this study was to investigate the relationship between tourism and CO₂ emissions from 1995 to 2018 in a sample of 20 Latin American countries. Econometric techniques of cointegration and causality were used to evaluate the relationship between these variables. To test the consistency of cointegration vectors, the dynamic ordinary least squares (DOSL) model was applied for individual countries and the panel dynamic ordinary least squares (PDOLS) model for groups of countries. The results show that tourism revenues have a negative effect on the global panel and upper‐middle‐income countries (UMICs). This result is statistically significant. However, as tourism revenues increase, they start to have a positive and significant effect on CO₂ emissions per capita, globally and in UMICs. These results, which are contrary to the theory, form a U shape, which does not support the ecological Kuznets curve.

The achievement of the Sustainable Development Goals (SDG) related to the environment requires identifying new sources of environmental degradation. In this research, we examine the impact of the underground economy on polluting gas emissions. This relationship was estimated, including the role of globalization, trade, and market size. Using annual data from the World Bank and the International Monetary Fund, we found that, in the short term, the underground economy had a negative effect on global environmental pollution and a long-term negative impact. In the long term, the cointegration results indicate a long-term relationship between the series included in the investigation. The existence of a long-term relationship between the variables implies that as the underground economy increases, the emissions of polluting gases also change. In the long term, policymakers can use the black economy as an instrument to influence environmental pollution. Likewise, we found a threshold effect in the index of globalization, trade, and market size. The existence of a threshold effect implies that from a threshold, the impact of globalization, trade, and the size of the market on polluting emissions is more significant. Therefore, the environmental policy must consider these aspects to achieve greater effectiveness of regulation in favor of the environment. The results were stable, including the dependence of the cross-sections and the heterogeneity in the slope of the panel. Actions to mitigate polluting gas emissions should regulate informal and clandestine activities and take advantage of globalization and trade to improve the practices of companies and individuals.

The purpose of this article is to analyze the relationship between economic growth (measured by economic, social, and financial variables) and the agricultural productive structure, as well as its possibilities for diversification, in Ecuador’s 23 provinces in the year 2014. First, we constructed the Shannon-Weaver index. We then used the graphic cartograms method to select relationships between variables. Next, we calculated the Pearson coefficient and the covariance, which revealed the linear association among the study’s variables. This methodology led us to conclude that several variables (the gross added value of only agriculture, the average total household income, and the economically active population) have a positive influence on agricultural diversification; each province’s overall gross added value, while the level of education, the unemployment rate, and the volume of credit had a negative influence.