Does trade openness affect CO2 emissions: evidence from ten newly industrialized countries?

Zhang, Shun; Liu, Xuyi; Bae, Jung-Han

doi:10.1007/s11356-017-9392-8

Cited by 231 publications

(111 citation statements)

References 32 publications

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“…The elasticity of lnY 2 showed that a 1% increase in the quadratic term of income level lowered emissions by −0.326% and −0.325% in model 1 and model 2, respectively, investigating the non-linear nexus between income level and pollution. Our findings on the EKC curve are consistent with Gokmenoglu et al [42], who also evidenced an inverted U-shaped relationship for the agriculture sector, as well as Usman et al [13], who confirmed the EKC hypothesis in the case of India, and Zhang et al [14], who evidenced this relationship for newly industrialized countries. Based on our EKC results, we could safely argue that the higher level of income raised more concerns for environmental protection in Pakistan as people could possibly be demanding a more sustainable environment.…”

Section: Ardl Long-term and Short-term Resultssupporting

confidence: 92%

“…The cross-sectional study of Zaman et al [28] confirmed a bell-shaped income-pollution nexus, and their findings supported that sectoral growth and energy use induced emissions over the globe. Zhang et al [14] verified a hypothetical EKC in 10 newly industrialized countries by applying panel cointegration and Granger causality tests. Acheampong [45] successfully confirmed the EKC hypothesis at the global and regional level for 116 countries.…”

Section: Cross-country Studiesmentioning

confidence: 99%

“…A large number of studies investigated the EKC theory in empirical settings based upon different sample characteristics and time spans, as well as applying a variety of econometric approaches. For instance, many researchers confirmed the existence of an inverted U-shaped nexus between economic growth and pollution [12][13][14][15][16]. The evidence on the EKC hypothesis in previous studies is quite controversial, and a large number of studies did not support an inverted U-shaped relationship between economic growth and CO 2 emissions [17][18][19].…”

Section: Introductionmentioning

confidence: 99%

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Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

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Section: Ardl Long-term and Short-term Resultssupporting

confidence: 92%

Section: Cross-country Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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“…Trade openness (sum of merchandise exports and imports divided by the value of GDP) has been extensively used in recent studies examining the EKC framework, as it yields significant results in empirical analyses (see Kisswani and Harraf [46], Ozatac and Gokmenoglu [47], Zhang and Liu [48], Dogan and Turkekul [49]), Ertugrul and Cetin [15], and Kais and Sami [14]). However, α 4 is expected to have a mixed effect on carbon emissions, as it varies with each country's environmental aspects.…”

Section: Methodsmentioning

confidence: 99%

Evaluating the EKC Hypothesis for the BCIM-EC Member Countries under the Belt and Road Initiative

et al. 2020

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This paper attempts to examine the environmental Kuznets curve (EKC) hypothesis for the BCIM-EC (Bangladesh-China-India-Myanmar economic corridor) member countries under the Belt and Road Initiative (BRI) of China. Both time series and panel data are covered, with respect to carbon dioxide (CO 2 ) emissions, GDP per capita, energy use, and trade openness. For panel data analysis, GDP per capita and energy consumption have positive effects on CO 2 , while the effect of the quadratic term of GDP per capita is negative in the short-run. However, the short-run effects do not remain valid in the long-run, except for energy use. Therefore, the EKC hypothesis is only a short-run phenomenon in the case of the panel data framework. However, based on the Autoregressive Distributed Lag (ARDL) approach with and without structural breaks, the EKC hypothesis exists in India and China, while the EKC hypothesis holds in Bangladesh and Myanmar with regard to disregarding breaks within the short-run. The long-run estimates support the EKC hypothesis of considering and disregarding structural breaks for Bangladesh, China, and India. The findings of the Dumitrescu and Hurlin panel noncausality tests show that there is a unidirectional causality that runs from GDP per capita to carbon emission, squared GDP to carbon emission, and carbon emission to trade openness. Therefore, the BCIM-EC under the BRI should not only focus on connectivity and massive infrastructural development for securing consecutive economic growth among themselves, but also undertake a long-range policy to cope with environmental degradation and to ensure sustainable green infrastructure.

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“…The study follows the model of existing studies such as Avetisyan et al 2010; Cristea et al 2013; Gozgor and Can (2016) and Zhang et al (2017); on the validation of the EKC model. Our model also proposes that trade and transport services in the economy are important determinants of carbon emissions.…”

Section: Methodology and Data Usedmentioning

confidence: 99%

Trade, transportation and environment nexus in Nigeria

Emmanuel-Longe¹,

Daniel-Ajulo²,

Omitogun³

et al. 2018

EurJ Appl Econ

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This study investigates trade, transportation and environment nexus in Nigeria. The main objective of the study is to incorporate transportation activities and trade into the EKC model seeing transportation as an important factor that determines environmental degradation in Nigeria. Annual data from 1984 to 2014 is used in the study, whereas ARDL estimation technique was adopted to analyse the data. The results show that all the variables have a positive significant correlation with carbon emissions in Nigeria except trade that was negative and insignificant. According to ARDL estimates,trade, import transport services and GDP per capita have positive impact on CO2 emissions in the long-run while in the short-run, the result shows that trade, GDP per capita, energy consumption and transport services are capable of correcting about 74% deviation of carbon emissions back to long-run equilibrium. Based on the findings, drawn conclusion stipulates that energy consumption and trade are the main determinant factors that contribute to carbon emission and appropriate attention should be given to energy consumption by considering alternative efficient energy sources to curb the increasing emission in Nigeria.

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Does trade openness affect CO2 emissions: evidence from ten newly industrialized countries?

Cited by 231 publications

References 32 publications

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Evaluating the EKC Hypothesis for the BCIM-EC Member Countries under the Belt and Road Initiative

Trade, transportation and environment nexus in Nigeria

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