Effects of export concentration on CO2 emissions in developed countries: an empirical analysis

Abstract

This paper provides the evidence on the short- and the long-run effects of the export product concentration on the level of CO emissions in 19 developed (high-income) economies, spanning the period 1962-2010. To this end, the paper makes use of the nonlinear panel unit root and cointegration tests with multiple endogenous structural breaks. It also considers the mean group estimations, the autoregressive distributed lag model, and the panel quantile regression estimations. The findings illustrate that the environmental Kuznets curve (EKC) hypothesis is valid in the panel dataset of 19 developed economies. In addition, it documents that a higher level of the product concentration of exports leads to lower CO emissions. The results from the panel quantile regressions also indicate that the effect of the export product concentration upon the per capita CO emissions is relatively high at the higher quantiles.

Export Diversification and CO2 Emissions: An Augmented Environmental Kuznets Curve

“…In our sample, Turkey is an upper middle‐income economy and is therefore classified as a developing country. Apergis et al () demonstrate that concentration of export products for developed countries causes a decrease in CO 2 emissions. From the EKC augmented by export diversification, our study generalized the results by putting developed and developing countries in the same sample, thereby producing a more general relationship: we call it the augmented EKC.…”

“…Focusing now on export structure, numerous empirical studies show a robust inverted U-shaped relationship between economic development and export diversification (Cadot et al, 2013;Cadot, Carrère, & Strauss-Kahn, 2011;IMF, 2014;Klinger & Lederman, 2004). To measure export diversification, we choose to calculate the Theil index for every single country-year observation because of its widespread use (Apergis et al, 2018;Cadot et al, 2011Cadot et al, , 2013Can & Gozgor, 2018;Gozgor & Can, 2016;IMF, 2014;Shahbaz et al, 2019). The Theil index is a concentration index; consequently, it is inversely proportional to the degree of export diversification.…”

“…Secondly, our findings will contribute to export diversification literature by analysing whether, for poorer and developing countries, a growth strategy such as export diversification, although recommended by international organizations for its benefits, would increase negative externalities such as environmental degradation and air pollution. Indeed, research questions related to economic growth in recent studies are increasingly focused on the diversification of export basket, for example, in its role in energy demand (Shahbaz et al, 2019) or in effects of diversification on the quality upgrading of exports (Can & Gozgor, 2018).…”

The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States

“…However, most of these studies have focused on the cases of emerging economies, such as Brazil, China, Egypt, India, Indonesia, Malaysia, Mexico, Nigeria, Turkey, and Tunisia (see e.g. Halicioglu, 2009; Jayanthakumaran et al, 2012; Lau et al, 2014; Onafowora and Owoye, 2014; Shahbaz et al, 2013and 2014) 5.…”

Does tourism investment improve the energy efficiency in transportation and residential sectors? Evidence from the OECD economies

“…Energy efficiency usually refers to the use of technology within the energy related products. Therefore, energy efficiency helps the economies to mitigate the growth of carbon emissions(Apergis et al, 2018). 2 The transportation sector accounts for 55% of the fuel consumption in 2015 and it is expected to be around the share of 60% by 2040 (EIA, 2017).…”