Does trade openness affects global carbon dioxide emissions

2020 ◽  
Vol 31 (1) ◽  
pp. 32-53 ◽  
Author(s):  
Mohd Arshad Ansari ◽  
Salman Haider ◽  
N.A. Khan
Keyword(s):  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Energy Consumption ◽  
Time Series Data ◽  
Structural Break ◽  
Trade Openness ◽  
Series Data ◽  
Content Type ◽  
Long Run ◽  
The Usa

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 environmental degradation in Saudi Arabia: exploring the unexplored

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Tahir ◽  
Arshad Hayat ◽  
Umar Burki
Keyword(s):  
Saudi Arabia ◽  
Environmental Degradation ◽  
Time Series Data ◽  
Trade Openness ◽  
Negative Relationship ◽  
Series Data ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Purpose Environmental degradation is recognized as a serious problem globally, and hence, Saudi Arabia is no exception. This paper aims to focus on the economy of Saudi Arabia to identify the determinants of environmental degradation. Design/methodology/approach Time series data spanning from 1971 to 2014 is used and analyzed using the recently developed autoregressive distributed lag modeling approach. Findings The obtained results reflected that natural resources, per person income and urbanization, have impacted environmental degradation both positively and significantly in the long run. Similarly, an insignificant negative relationship is established between trade openness and environmental degradation. Moreover, energy consumption has positively but insignificantly affected environmental degradation. In the short run, only per capita income has positively influenced environmental degradation while the rest of the variables have lost either significance levels or their direction of relationship has reversed. Originality/value As this is a pioneering study on the economy of Saudi Arabia, therefore, the authors assume that policymakers will find the findings of the current study very useful while formulating and implementing policies to control environmental degradation.

scholarly journals Environmental Kuznet’s Curve for Saudi Arabia: An Endogenous Structural Breaks based Cointegration Analysis

2017 ◽  
Vol 5 (1) ◽  
pp. 198
Author(s):  
Mohammad Asif
Keyword(s):  
Saudi Arabia ◽  
Structural Breaks ◽  
Time Series Data ◽  
Structural Break ◽  
Trade Openness ◽  
Cointegration Analysis ◽  
Series Data ◽  
Test Results ◽  
Long Run ◽  
Endogenous Structural Breaks

The study attempts to analyse cointegrating relationship between carbon emissions, energy consumption, income and trade openness in case of Saudi Arabia using the time series data for the period 1971-2011. For this purpose, it uses the ARDL cointegrating technique to find out the long run relationships among the variables. The bounds test results indicate that there exist long- run relationships between the variables. The study also used threshold cointegrating test in order to test the environmental Kuznet’s curve hypothesis in the presence of regime shift. This study confirms existence of cointegrating relationship in case of single structural break, but for two structural break there is no cointegration among the variables. The Environmental Kuznet’s curve hypothesis does not hold in Saudi Arabia. The study does not find long run coefficients statistically significant except for trade openness.

An econometric study of carbon dioxide (CO2) emissions, energy consumption, and economic growth of Pakistan

2012 ◽  
Vol 6 (4) ◽  
pp. 518-533 ◽  
Author(s):  
Matloub Hussain ◽  
Muhammad Irfan Javaid ◽  
Paul R. Drake
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Granger Causality ◽  
Time Series Data ◽  
Series Data ◽  
Future Research ◽  
Content Type ◽  
Per Capita

PurposeThe purpose of this paper is to examine the relationship among environmental pollution, economic growth and energy consumption per capita in the case of Pakistan. The per capital carbon dioxide (CO2) emission is used as the environmental indicator, the commercial energy use per capita as the energy consumption indicator, and the per capita gross domestic product (GDP) as the economic indicator.Design/methodology/approachThe investigation is made on the basis of the environmental Kuznets curve (EKC), using time series data from 1971 to 2006, by applying different econometric tools like ADF Unit Root Johansen Co‐integration VECM and Granger causality tests.FindingsThe Granger causality test shows that there is a long term relationship between these three indicators, with bidirectional causality between per capita CO2 emission and per capita energy consumption. A monotonically increasing curve between GDP and CO2 emission has been found for the sample period, rejecting the EKC relationship, implying that as per capita GDP increases a linear increase will be observed in per capita CO2 emission.Research limitations/implicationsFuture research should replace the economic growth variable, i.e. GDP by industrial growth variable because industrial sector is major contributor of pollution by emitting CO2.Practical implicationsThe empirical findings will help the policy makers of Pakistan in understanding the severity of the CO2 emissions issue and in developing new standards and monitoring networks for reducing CO2 emissions.Originality/valueEnergy consumption is the major cause of environmental pollution in Pakistan but no substantial work has been done in this regard with reference to Pakistan.

scholarly journals The Dynamic Relationship among Economic Growth, Energy Consumption and Environment in Iran

2015 ◽  
Vol 50 ◽  
pp. 118-128
Author(s):  
Hamid Amadeh ◽  
Parisa Kafi
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
Growth Energy

In recent decades, environmental risks and hazards are more visible. These damages caused by a combination of factors such as population growth, economic growth, energy, and industrial activities. This study discusses long-run equilibrium relationship, short-term dynamic relationships and causal relationships between energy consumption, economic growth and the environment (carbon dioxide emissions) in Iran, by using time series data during 1971-2009, through Co integration test. Co integration test demonstrates that a long-run relationship exists among the three variables. It is obvious that carbon dioxide emissions will be increased by positive shock of energy consumption and economic growth, by a one percent increase in energy consumption and economic growth, carbon dioxide emissions will increase 55 and 43 percent respectively. The result of this study is important because of reducing carbon dioxide emissions from energy use and economic development matters. In other words, to reduce carbon dioxide emissions, the government should reduce the amount of Petroleum products in energy consumption, and it also improves the efficiency of using energy.

Effects of renewable energy consumption and trade on environmental pollution

2019 ◽  
Vol 30 (2) ◽  
pp. 437-455 ◽  
Author(s):  
Alper Karasoy ◽  
Selçuk Akçay
Keyword(s):  
Carbon Dioxide ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Unit Root ◽  
Carbon Dioxide Emissions ◽  
Structural Break ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Long Run

PurposeThe purpose of this paper is to examine the impacts of (non-renewable and renewable) energy consumption and trade on environmental pollution in an environmental Kuznets curve (EKC) setting in Turkey for the 1965–2016 period.Design/methodology/approachBesides conventionally used unit root tests, Zivot–Andrews unit-root test is also employed to account for a possible structural break. To investigate the interrelationships among the variables, the autoregressive distributed lag and the vector error correction methodologies are employed.FindingsThe results verify the EKC hypothesis. Moreover, increases in trade and non-renewable energy consumption rise carbon emissions in long run, while renewable energy consumption reduces it in both short- and long-run. The causality analysis reveals that there are bi-directional long-run causalities between non-renewable energy consumption and carbon dioxide emissions, and between trade and carbon dioxide emissions. Additionally, the neutrality hypothesis is valid for the renewable energy consumption-income nexus in both short- and long-run. For the non-renewable energy consumption-income nexus, the neutrality hypothesis holds only in short-run and the conservation hypothesis holds only in long-run.Originality/valueThis is the first study which incorporates both renewable energy consumption and trade into its environmental pollution model for Turkey. Moreover, by investigating short- and long-run causalities among the employed variables, more robust policy implications are put forward. Lastly, this study employs a longer sample period and considers a structural break in its models.

scholarly journals A Historical and Econometric Analysis of Energy Consumption and Industrial Output in Pakistan (1990-2019)

2021 ◽  
Vol 2 (2) ◽  
pp. 353-382
Author(s):  
Muhammad Umair ◽  
Muhammad Ramzan Sheikh ◽  
Kashif Saeed            
Keyword(s):  
Energy Consumption ◽  
Time Series Data ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Series Data ◽  
Industrial Output ◽  
Oil Consumption ◽  
Industrial Growth ◽  
Long Run ◽  
Gas Consumption

This paper examines the nexus of disaggregated energy consumption and industrial output in Pakistan. The annual time series data over the period 1990-2019 has been taken for current research. ARDL technique has been employed for empirical analysis. The results show that oil consumption, electricity consumption and gas consumption are positively and significantly connected with the industrial output in long run. Similarly, trade openness, labour and capital also have the same association with the industrial output and have significant outcomes in the long run. The results of Granger causality show that there exists a unidirectional causality from electricity consumption to industrial output. The study concludes that oil, gas and electricity are contributing a large share in industrial growth so that it would be made an effort to install the plants relevant with these energy sources to meet the affordable demand in the industry sector.

Does poverty lead to crime? Evidence from the United States of America

2018 ◽  
Vol 45 (10) ◽  
pp. 1424-1438 ◽  
Author(s):  
Mohammed Imran ◽  
Mosharrof Hosen ◽  
Mohammad Ashraful Ferdous Chowdhury
Keyword(s):  
Time Series Data ◽  
Property Crime ◽  
The United States ◽  
Economic Hardship ◽  
Series Data ◽  
Advanced Economy ◽  
Content Type ◽  
Long Run ◽  
The Usa ◽  
The Impact

Purpose Economic hardship and crime is always a debatable issue in the political economy literature. Some authors define poverty leads to crime some are completely opposite. The purpose of this paper is to find out the impact of poverty on crime in the USA. Design/methodology/approach Using time series data of USA over the period from 1965 to 2016, this study applies autoregressive distributed lag approach to identify the effect of poverty on crime. Findings The outcomes confirm a positive co-integrating relationship between poverty and property crime. It can be argued that poverty ultimately leads property crime in long run in the USA. However, unemployment and GDP exhibit neither long-run nor short-run relationship with property crime and they are not cointegrated for the calculated period. Research limitations/implications The subject of this paper helps to explain and analyze the nexus between poverty and crime in the USA. Practical implications Government and policymakers should focus more on poverty rather than unemployment alone to control property crime. Originality/value This study attempts to identify the consequences of economic hardship and poverty on the crime in the advanced economy like USA.

Has the low level of economic growth spurred informal sector activities in Uganda? An empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Esaku
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Shadow Economy ◽  
Time Series Data ◽  
Series Data ◽  
Content Type ◽  
Low Level ◽  
Revenue Collection ◽  
Long Run ◽  
Short Run

PurposeIn this paper, the authors examine how economic growth shapes the shadow economy in the long and short run.Design/methodology/approachUsing annual time series data from Uganda, drawn from various data sources, covering the period from 1991 to 2017, the authors apply the ARDL modeling approach to cointegration.FindingsThis paper finds that an increase in economic growth significantly reduces the size of the shadow economy, in both the long and short run, all else equal. However, the long-run relationship between the shadow economy and growth is non-linear. The results suggest that the rise of the shadow economy could partially be attributed to the slow and sluggish rate of economic growth.Practical implicationsThese findings imply that addressing informality requires addressing underlying factors of underdevelopment since improvements in economic growth also translate into a reduction in the size of the shadow economy in the short and long run.Originality/valueThese findings reveal that the low level of economic growth is an issue because it spurs informal sector activities in the short run. However, as the economy improves, it becomes an incentive for individuals to operate in the informal sector. Additionally, tackling shadow activities in the short run could help improve tax revenue collection.

Impact of urbanization on per capita energy use and emissions in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stuti Haldar ◽  
Gautam Sharma
Keyword(s):  
Carbon Dioxide ◽  
Energy Consumption ◽  
Population Density ◽  
Carbon Dioxide Emissions ◽  
Energy Demand ◽  
Energy Use ◽  
Energy Intensity ◽  
Series Data ◽  
Content Type ◽  
Per Capita

Purpose The purpose of this study is to investigate the impacts of urbanization on per capita energy consumption and emissions in India. Design/methodology/approach The present study analyses the effects of urbanization on energy consumption patterns by using the Stochastic Impacts by Regression on Population, Affluence and Technology in India. Time series data from the period of 1960 to 2015 has been considered for the analysis. Variables including Population, GDP per capita, Energy intensity, share of industry in GDP, share of Services in GDP, total energy use and urbanization from World Bank data sources have been used for investigating the relationship between urbanization, affluence and energy use. Findings Energy demand is positively related to affluence (economic growth). Further the results of the analysis also suggest that, as urbanization, GDP and population are bound to increase in the future, consequently resulting in increased carbon dioxide emissions caused by increased energy demand and consumption. Thus, reducing the energy intensity is key to energy security and lower carbon dioxide emissions for India. Research limitations/implications The study will have important policy implications for India’s energy sector transition toward non- conventional, clean energy sources in the wake of growing share of its population residing in urban spaces. Originality/value There are limited number of studies considering the impacts of population density on per capita energy use. So this study also contributes methodologically by establishing per capita energy use as a function of population density and technology (i.e. growth rates of industrial and service sector).

scholarly journals Consequences of Capital formation, Trade Liberalization on the Economic Growth: Pakistan’s Experience

2015 ◽  
Vol 2 (1) ◽  
pp. 1-4
Author(s):  
Nadia Bukhari ◽  
Anjum Iqbal
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Capital Formation ◽  
Vital Role ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
Adf Test

This study considers the long run relationship between the liberalization of trade, capital formation and the economic growth of Pakistan by using the time series data from 1975-2013. The main aim of this study is to examine that how much liberalization of trade and capital formation affects the economic growth of Pakistan in long run. The approach that has been used for empirical analysis is Auto Regressive Distributed Lag (ARDL) model. Under the ADF test capital formation (CF) is stationary at its first level but the trade openness (TO) and GDP is stationary at its first difference. Moreover, the granger casualty test is evident that there become a casual relationship between the trade openness and GDP. The result of this study shows that both the trade openness and the capital formation determined the economic growth in long run and they both have statistically significant effect on the GDP. Furthermore it has has been depicted from the study that the trade has a vital role to influence the economic growth.

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