Trade openness and environmental quality: International evidence

Le, Thai‐Ha; Chang, Youngho; Park, Donghyun

doi:10.1016/j.enpol.2016.01.030

Cited by 249 publications

(107 citation statements)

References 62 publications

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“…The scale effect indicates the trade increases the production of goods and services that ultimately increases the consumption of energy. Increased consumption of energy deteriorates the environment by increasing GHG emissions [32]. Therefore, the scale effect suggests that there is a positive or negative relationship between trade-openness and environmental degradation (environmental sustainability).…”

Section: Conceptual Model Of the Studymentioning

confidence: 99%

Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

Ahmed

Kousar²,

Pervaiz

et al. 2020

Sustainability

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The aim of this study is threefold; first, the study investigates the symmetric impact of trade openness, financial development, and institutional quality on environmental degradation and environmental sustainability. Second, the study examines the asymmetric relationship between financial development, institutional quality, and environmental degradation. Third, the study examines the asymmetric relationship between financial development, institutional quality, and environmental sustainability. For this purpose, the study utilized the data of Pakistan from 1996 to 2018. The study applied Augmented Dickey–Fuller (ADF), Phillips Parron (PP) and Zivote, and Andrews unit root test to check the properties of stationarity of the data. This study applied the Auto Regressive Distributive Lags (ARDL) model to investigate symmetric relationships while the Non-Linear Auto Regressive Distributive Lag Model (NARDL) approach is utilized to investigate the asymmetric relationship among variables. ARDL bounds testing approach utilized to investigate long-run co-integration while short-run dynamics have been investigated by applying the error correction method (ECM). This study found the significant long-run symmetric and asymmetric association of institutional quality (IQ) and financial development (FD) with environmental degradation (ED) and environmental sustainability. However, IQ- has an insignificant association with environmental sustainability. Moreover, dynamic multiplier analysis indicates that positive shock to FD and IQ has a stronger impact on environmental degradation while a positive or negative shock to FD; both have a stronger impact on environmental sustainability. However, a positive or negative shock to IQ has a smaller impact on environmental sustainability. Moreover, the study also found a significant long-run symmetric association of trade openness with environmental degradation and environmental sustainability. This study suggests that the quality of institutions, financial development, and trade openness is necessary to enhance the quality of the environment.

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Section: Conceptual Model Of the Studymentioning

confidence: 99%

Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

Ahmed

Kousar²,

Pervaiz

et al. 2020

Sustainability

View full text Add to dashboard Cite

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“…Higher levels of trade openness among all countries will intensify the production of goods and services where each country has a comparative advantage and hence, more efficient production technologies that might result in more energy efficient ones too. Le et al (2016) studied the interlinkages between trade openness and various emissions of particulate matter (PM10). Their results shows that increased trade openness is linked with environmental degradation but the findings differ depending on the countries' income (positive effect in high-income and damaging in middle-and low-income countries).…”

Section: Literature Reviewmentioning

confidence: 99%

The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators

2018

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“…Based on data from 98 countries, Lee et al [22] recently investigated the relationship between trade openness and carbon emissions, with PM10 emissions used as a measure of environmental degradation. Their results reveal that trade openness decreases environmental quality.…”

Section: Environmental Degradation-globalizationmentioning

confidence: 99%

Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis

Shahbaz

Shahzad

Mahalik

2017

Environ Model Assess

196

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Using annual data 1970Using annual data -2014, this paper examines the effects of globalization on CO2 emissions in Japan while accounting for economic growth and energy consumption as potential determinants of carbon emissions. The structural breaks and asymmetries arising due to policy shifts require attention and hence an asymmetric threshold version of the ARDL model is utilized. The results show the presence of threshold asymmetric cointegration between the variables. The threshold-based positive and negative shocks arising in globalization increase carbon emissions, while the impact of the latter is more profound. Energy consumption (economic growth) also has a significant positive effect on carbon emissions. Globalization, economic growth and energy consumption significantly increase carbon emissions in the short run. We suggest that policy makers in Japan should consider globalization and energy consumption as policy tools while formulating their policies towards protecting sustainable environmental quality in the long run. Otherwise, the Japanese economy may continue to face environmental consequences such as undesirable climate change and massive warming at the micro and macro levels as a result of potential shocks arising from globalization and energy consumption.Keywords: Carbon emissions, energy consumption, globalization, threshold NARDL Acknowledgement: This paper is produced with no funding from any organizations.2

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Trade openness and environmental quality: International evidence

Cited by 249 publications

References 62 publications

Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach

The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators

Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis

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