Trade Liberalization, Economic Growth and Environmental Quality Nexus: An Empirical Evidence from Pakistan

The linkage between trade liberalization, environmental quality and economic growth is becoming an increasingly popular issue in environmental economics in recent decades. In view of Pakistan’s position as one of the main contributors to carbon dioxide emissions in Asia, it is vital to identify the main determinants of carbon dioxide emissions. The present study empirically investigates the long run association among trade liberalization, environmental quality and economic growth along with other variables energy use and capital labor ratio in Pakistan for the period 1980-2018. The results also indicate that there is inverted U shape relationship between economic growth and carbon dioxide emissions, hence the environmental Kuznets curve hypothesis is valid in Pakistan during 1980-2018. Trade openness has a negative significant impact on carbon dioxide emissions. Capital labor ratio effects and energy use have a direct relationship with carbon dioxide emissions. The results show that environmental quality is first declined by economic growth but with further increase in growth, environmental quality is improved which supports the existence of Environmental Kuznet curve hypothesis in Pakistan during that time span. Furthermore, results also show that trade openness has positive significant impact on environmental quality.

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Economic Growth And Carbon Dioxide Emissions: The Environmental Kuznets Curve Hypothesis In Yemen

Iraqi Journal of Economic Sciences ◽

10.31272/ijes2021.68.3 ◽

2021 ◽

Vol 2021 (68) ◽

pp. 42-58

Author(s):

Essa Alhannom ◽

Ghaleb Mushabab

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Energy Consumption ◽

Co2 Emissions ◽

Carbon Dioxide Emissions ◽

Environmental Kuznets Curve ◽

Trade Openness ◽

Kuznets Curve ◽

Per Capita ◽

Environmental Kuznets Curve Hypothesis

Abstract This study investigates the validity of the Environmental Kuznets Curve hypothesis in Yemen and the causal relationships between Carbon dioxide emissions, per capita income, energy consumption, trade openness, and industrial share to GDP. ARDL bounds testing approach to cointegration, Error Correction Model, and Toda-Yamamoto procedure to Granger causality techniques were employed on annual data covering the period from 1990 to 2010. long run relationship between CO2 emissions and its determinants with significant effects for per capita GDP and trade openness, whereas, energy consumption and trade openness appear to be important determinants of CO2 emissions in the short run. Besides, based on Narayan and Narayan (2010) approach, it is found that the EKC hypothesis does not hold in Yemen and therefore the effect of per capita income on CO2 emissions is monotonically increasing. Toda-Yamamoto causality test proved the existence of bidirectional causal relationships between economic growth and CO2 emissions, between energy consumption and economic growth, and between trade openness and energy consumption

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The Nexus between Technological Innovation and Carbon Dioxide Emissions: Evidence from China

NICE Research Journal ◽

10.51239/nrjss.v0i0.77 ◽

2018 ◽

pp. 181-193

Author(s):

Sarfaraz Ahmed Shaikh ◽

Zainab Taiyyeba ◽

Khalid Khan

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Technological Innovation ◽

Environmental Quality ◽

Carbon Dioxide Emissions ◽

Positive Impact ◽

Dynamic Effect ◽

Development Economic ◽

Kuznets Curve ◽

Distributed Lag

This study inspects the dynamic effect of technological innovation, financial development, economic growth, and energy consumption on carbon dioxide (CO2) emissions. We applied the auto-regressive distributed lag (ARDL) model technique for the period from 1980 to 2017. The quantitative outcomes show a negative and insignificant relationship between technological innovation and environmental pollution in China during the said period. Furthermore, the long-run assessment results disclose that economic growth; boost-up the environmental quality of China. Thus, the results support the Environmental Kuznets Curve (EKC) hypothesis, which means that environmental degradation can be resolved inevitably by economic growth. Similarly, results show that the financial sector development exerts a positive impact on environmental quality.

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Causal Link in Carbon Dioxide (CO2) Emission, Energy Consumption and Economic Growth: Evidence from Selected Southeast Asia Countries

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v8i2.8937 ◽

2020 ◽

Vol 8 (2) ◽

pp. 1 ◽

Cited By ~ 1

Author(s):

Nur Hafizah Mohammad Ismail

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Energy Consumption ◽

Southeast Asia ◽

Carbon Dioxide Emissions ◽

Energy Demand ◽

Causal Link ◽

Kuznets Curve ◽

Growth Energy ◽

Carbon Dioxide Co2

Southeast Asia countries have experienced rapid economic growth within past decades with significant increase in energy dependency and carbon dioxide (CO2) emissions. Continuous development in urban area has stimulated rise in energy consumption in many Southeast Asia countries which resulted in an improvement of citizen’s lifestyles and living standards due to increasing income and population. Understanding the relationship between economic growth, energy consumption and carbon dioxide emissions helps economies in formulating energy policies, enhancing energy security and developing a sustainability of energy resources. Therefore, this study focuses on the economic growth, energy consumption and carbon dioxide emissions evolved in Southeast Asia by using Environment Kuznets Curve theory. This paper could be useful and beneficial for the Southeast Asia countries to form appropriate environment policies in order to maintain the balance of energy demand and supply and dealing with environmental quality issues.

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The Relationship between Economic Growth, Energy Consumption and CO2 Emission in the Middle East and North Africa (MENA)

Folia Oeconomica Stetinensia ◽

10.2478/foli-2021-0020 ◽

2021 ◽

Vol 21 (2) ◽

pp. 132-147

Author(s):

Mohammed Touitou

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Energy Consumption ◽

Carbon Dioxide Emissions ◽

Past Century ◽

Kuznets Curve ◽

Mena Region ◽

Mena Countries ◽

Cointegration Tests ◽

The Relationship

Abstract Research background: CO2 emissions are considered to be the main reason for global warming, and for this reason, their regulation is a very important issue for governments. Due to the increasing use of energy, carbon dioxide emissions have increased dramatically over the past century, with a direct link to economic growth and development. The relationship between CO2 emissions, growth and energy consumption is therefore at the heart of current economic issues. Purpose: This study aimed at examining the relationship among economic growth, carbon dioxide (CO2) emissions and energy consumption in selected MENA countries, in the period 1995–2017. Research methodology: To prove these relations, a stationary data panel methodology is used supported by unitary root and cointegration tests. Results: The results indicated that there is a long-term relationship between CO2 emissions, energy consumption and GDP. In addition, it is found that the elasticity of CO2 emissions with respect to energy consumption is less than one (inelastic), and the elasticity of CO2 emissions with respect to GDP suggests the existence of an Environmental Kuznets Curve. An important finding is that energy consumption has a positive but relatively low effect on CO2 emissions. To reduce CO2 emissions, the countries of the MENA region are being called upon to increase significantly the use of renewable energies and the establishment of a more efficient energy policy.

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Effects of agriculture, renewable energy, and economic growth on carbon dioxide emissions: Evidence of the environmental Kuznets curve

Resources Conservation and Recycling ◽

10.1016/j.resconrec.2020.104879 ◽

2020 ◽

Vol 160 ◽

pp. 104879 ◽

Cited By ~ 8

Author(s):

Nur Hilfa Awatif Mohamad Ridzuan ◽

Nur Fakhzan Marwan ◽

Norlin Khalid ◽

Mohd Helmi Ali ◽

Ming-Lang Tseng

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Renewable Energy ◽

Carbon Dioxide Emissions ◽

Environmental Kuznets Curve ◽

Kuznets Curve

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Carbon Dioxide Emissions, Energy Consumption and Economic Growth: A Comparative Empirical Study of Selected Developed and Developing Countries. “The Role of Exergy”

Energies ◽

10.3390/en11102668 ◽

2018 ◽

Vol 11 (10) ◽

pp. 2668 ◽

Cited By ~ 9

Author(s):

Raúl Arango-Miranda ◽

Robert Hausler ◽

Rabindranarth Romero-Lopez ◽

Mathias Glaus ◽

Sara Ibarra-Zavaleta

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Energy Consumption ◽

Empirical Study ◽

Carbon Dioxide Emissions ◽

Energy Intensity ◽

Trade Openness ◽

Control Variable ◽

Future Research

Diverse factors may have an impact in carbon dioxide (CO2) emissions; thus, three main contributors, energy consumption, gross domestic product (GDP) and an exergy indicator are examined in this work. This study explores the relationship between economic growth and energy consumption by means of the hypothesis postulated for the Environmental Kuznets Curve (EKC). Panel data for ten countries, from 1971 to 2014 have been studied. Despite a wide gamma of research on the EKC, the role of an exergy variable has not been tested to find the EKC; for this reason, exergy analysis is proposed. Exergy analyses were performed to propose an exergetic indicator as a control variable and a comparative empirical study is developed to study a multivariable framework with the aim to detect correlations between them. High correlation between CO2, GDP, energy consumption, energy intensity and trade openness are observed, on the other hand not statistically significant values for trade openness and energy intensity. The results do not support the EKC hypothesis, however exergy intensity opens the door for future research once it proves to be a useful control variable. Exergy provides opportunities to analyze and implement energy and environmental policies in these countries, with the possibility to link exergy efficiencies and the use of renewables.

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The Impact of Trade Openness on Environmental Pollution

Regional Economic Integration and the Global Financial System - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-7308-3.ch017 ◽

2015 ◽

pp. 221-232 ◽

Cited By ~ 1

Author(s):

Murat Cetin ◽

Fahri Seker ◽

Hakan Cavlak

Keyword(s):

Carbon Dioxide ◽

Environmental Pollution ◽

Carbon Dioxide Emissions ◽

Trade Openness ◽

Kuznets Curve ◽

Industrialized Countries ◽

Newly Industrialized Countries ◽

Long Run ◽

Causality Tests ◽

The Impact

This chapter analyzes the impact of trade openness on environmental pollution in the newly industrialized countries that have focused on trade over the period 1971-2010 by using recently developed panel unit root, cointegration, and causality tests. The results indicate a cointegration relationship between the variables. The results also show that trade openness increases carbon dioxide emissions with the elasticity of 0.53 and there is a Granger causality running from trade openness to carbon dioxide emissions in the long run. These findings may provide some policy implications. Without taking into account impact of trade on pollutions, optimistic environmental Kuznets curve hypothesis would be invalid. Therefore, policymakers who decide on environment policies should pay attention to not only growth effects but also trade effects on pollutions. Future empirical analysis would expose the new evidences for governmental policies and environmental regulations to change these effects positively.

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Investigation of the Relations Between Foreign Trade and Characteristics of Environmental Quality: Existing Approaches and Approbation of Gravity Modeli

Voprosy statistiki ◽

10.34023/2313-6383-2021-28-6-69-78 ◽

2021 ◽

Vol 28 (6) ◽

pp. 69-78

Author(s):

A. V. Shved

Keyword(s):

Carbon Dioxide ◽

Environmental Quality ◽

Carbon Dioxide Emissions ◽

Gravity Theory ◽

Gravity Models ◽

Kuznets Curve ◽

Porter Hypothesis ◽

Modern Economic ◽

The Republic ◽

Trade Partners

The purpose of this study is for the author to summarize approaches and methods for assessing availability, identifying forms and types of relations between characteristics of environmental quality and international trade, and also to test the gravity theory of trade as such a method (on the example of the Republic of Belarus).The author has investigated modern economic works devoted to the study of the influence of trade liberalization on environmental pollution, the pollution haven hypothesis, the environmental Kuznets curve, the Porter hypothesis, etc., as well as the studies aimed at confirming or refuting these hypotheses, has systematized modern approaches to assessing the relations between trade and environmental indicators.Based on the panel data for the period from 1995 to 2019, the author has constructed the gravity models of trade (separately for export and import) of the Republic of Belarus with the EAEU partner countries and neighboring countries (Lithuania, Latvia, Poland, Ukraine), taking into account the environmental impact (the carbon dioxide emissions as the proxy variable of pollution). The simulation results have confirmed the theoretical provisions of the gravity theory. In addition, a significant effect of an increase in carbon dioxide emissions of countries – trade partners of the Republic of Belarus on its imports has been revealed.

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General Equilibrium Analysis of the Effects of Technological Progress for Energy Intensity and Carbon Dioxide Emissions in China

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.347-353.1093 ◽

2011 ◽

Vol 347-353 ◽

pp. 1093-1097

Author(s):

Ai Jun Li ◽

Zheng Li

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

General Equilibrium ◽

Computable General Equilibrium ◽

Carbon Dioxide Emissions ◽

Technological Progress ◽

Energy Use ◽

Energy Intensity ◽

Computable General Equilibrium Model ◽

Equilibrium Analysis

This study analyzes the effects of technological progress for energy intensity and energy use related carbon dioxide emissions during urbanization in China by a dynamic computable general equilibrium model. The parameters about technological progress and urbanization are all exogenously given. The impacts of technological progress on economic growth, energy intensity and carbon dioxide emissions during period from 2002 to 2030 are examined. Simulation results show that gradually pushing energy efficiency related technologies through appropriate policy incentives is the key to realize low-carbonized development while promoting economic growth in China.

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