Does trade openness affects global carbon dioxide emissions

Abstract

Purpose The purpose of this paper is to analyze the effect of economic growth, international trade and energy consumption on the global carbon dioxide (CO2) emissions, in the case of top CO2 emitters, namely, USA, Japan, Canada, Iran, Saudi Arabia, UK, Australia, Italy, France and Spain using the annual data from 1971 to 2013. Design/methodology/approach For this purpose, the time series, data technique is applied. Unit root test with structural break and the bounds testing approach for cointegration in the presence of structural break is tested. Finally, a vector error correction model for the Granger causality test is applied to detect the direction of causality. The authors have used the techniques that will help in examining the structural break in the time series data. Findings The results reveal that their exists a long-run relationship between CO2 emissions and its determinants in the USA, Canada, Iran, Saudi Arabia, the UK, Australia, Italy, France and Spain, energy consumption is the main determinant of carbon dioxide (CO2) emissions in the long run and for direction of causality, the authors found bidirectional causality in the long run between energy consumption and CO2 emissions in the USA, Canada, Iran, Saudi Arabia and the UK, and Granger causality running in opposite direction in the case of Australia from CO2 emissions to energy consumption was analyzed. In terms of growth-trade-pollution nexus (USA, Canada, Iran and France) hold one-way causality running from economic growth and trade openness to CO2 emissions (IV) the environmental Kuznets curve hypothesis is validated only for the USA. Robust policy implications can be derived from this study. First, without harming the economy, these countries can reduce the use of energy consumption for lower pollution. Second, the amount of trade should be decreased to lower the emissions because the authors find that an increase in trade does Granger cause to CO2 emissions in the long run. Originality/value There has been no study that investigated the relationship between CO2 emissions, real income, consumption of energy and international trade in the environmental Kuznets relation for the top CO2 emitter’s countries over the period of 1971–2013. The authors did a comparative study of the empirical finding among these nations.

Determinants of material footprint in BRICS countries: an empirical analysis

“…However, various studies have taken various environmental indicators like carbon dioxide emissions and ecological footprint as a proxy for measuring environmental quality. This paper adopts material footprint(MF) as recommended in a previous research paper (Giljum et al, 2015;Berrill et al, 2020;Ansari et al, 2020b;Karakaya et al, 2020). In light of the above factors, the goal is to explore the determinants of MF in five BRICS countries by using advanced panel techniques, including renewable energy, urbanization, and natural resources.…”

“…All variables were transformed into logarithmic form to reduce the data sets fluctuation (Villanthenkodath & Arakkal, 2020;Sahoo and Sahoo, 2020a;Sahoo and Sahoo, 2019). This study Following (Ansari et al, 2020b;Nathaniel et al, 2020b) the specification of the model is as follows: ------------------------------------------Insert Table 1------------------------------------------…”

Re-Estimating the Impact of Natural Gas on Global Carbon Emissions: The Role of Technological Innovation

“…Furthermore, many researchers have examined the impact of trade openness on CO 2 emissions. For example, Ahmed et al 2017, Ansari et al (2020), and Bernard and Mandal (2016) find that trade openness has a positive impact on CO 2 emissions. However, based on a dataset for OECD countries covering the period 1960-2013, Gozgor (2017) reveals that trade openness affects CO 2 emissions negatively in the long run.…”

Determinants of Material Footprint in BRICS Countries: An Empirical Analysis

“…All variables were transformed into logarithmic form to reduce the data sets fluctuation (Villanthenkodath & Arakkal, 2020;Sahoo and Sahoo, 2020a;Sahoo and Sahoo, 2019). This study Following (Ansari et al, 2020b;Nathaniel et al, 2020b) the specification of the model is as follows:…”