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

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.

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

2020 ◽  
Vol 3 (3) ◽  
Author(s):  
Noreen Safdar ◽  
Hina Ghaffar ◽  
Fatima Farooq ◽  
Malka Liaquat
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Trade Liberalization ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Energy Use ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Labor Ratio ◽  
Capital Labor Ratio

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.

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

2020 ◽  
Vol 6 (4) ◽  
pp. 1077-1087
Author(s):  
Noreen Safdar ◽  
Hina Ghaffar ◽  
Fatima Farooq ◽  
Malka Liaquat
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Trade Liberalization ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Energy Use ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Labor Ratio ◽  
Capital Labor Ratio

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.

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

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.

scholarly journals Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses

Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3956 ◽  
Author(s):  
Elkhan Richard Sadik-Zada ◽  
Wilhelm Loewenstein
Keyword(s):  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Environmental Kuznets Curve ◽  
Fixed Effects ◽  
Fossil Fuel ◽  
Substantial Reduction ◽  
Resource Curse ◽  
Time Interval ◽  
Kuznets Curve ◽  
Per Capita

The present inquiry addresses the income-environment relationship in oil-producing countries and scrutinizes the further drivers of atmospheric pollution in the respective settings. The existing literature that tests the environmental Kuznets curve hypothesis within the framework of the black-box approaches provides only a bird’s-eye perspective on the long-run income-environment relationship. The aspiration behind this study is making the first step toward the disentanglement of the sources of carbon dioxide emissions, which could be employed in the pollution mitigation policies of this group of countries. Based on the combination of two strands of literature, the environmental Kuznets curve conjecture and the resource curse, the paper at hand proposes an augmented theoretical framework of this inquiry. To approach the research questions empirically, the study employs advanced panel cointegration techniques. To avoid econometric misspecification, the study also employs for the first time a nonparametric time-varying coefficient panel data estimator with fixed effects (NPFE) for the dataset of 37 oil-producing countries in the time interval spanning between 1989 and 2019. The empirical analysis identifies the level of per capita income, the magnitude of oil rents, the share of fossil fuel-based electricity generation in the energy mix, and the share of the manufacturing sector in GDP as essential drivers of carbon dioxide emissions in the oil-rich countries. Tertiarization, on the contrary, leads to a substantial reduction of emissions. Another striking result of this study is that level of political rights and civil liberties are negatively associated with per capita carbon emissions in this group of countries. Furthermore, the study decisively rejects an inverted U-shaped income-emission relationship and validates the monotonically or exponentially increasing impact of average income on carbon dioxide emissions.

FOREIGN DIRECT INVESMENT OUTFLOWS AND ENVIRONMENTAL POLLUTION: HIDDEN COINTEGRATION ANALYSIS FOR TURKEY

2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Causality Relationship ◽  
Cointegration Relationship

The relationship between foreign direct investment, which is a type of cross-border and long-term investment, and environmental quality is a current issue that is heavily debated. Foreign direct invesments can ensure economic growth and development of countries, while also causing a change in environmental quality. In the research conducted, it is seen that changes in carbon dioxide emissions with foreign direct capital inflows are mainly investigated from the point of view of the host countries. However, foreign direct invesment outflows may have an impact on the environmental quality of the home country. Because foreign direct invesment outflows can enable the transfer of more environmentally friendly techonogies to the country and strengthen management skills. The impact of foreign direct investment outflows on the home country's environmental pollution is shaped by many factors (scale, technique, and composition effects). In addition to these effects, it is necessary to pay attention to the regional and sectoral distribution of capital outflows. The main aim of this study is to examine the links between Turkey's foreign direct invesment outflows and carbon dioxide emissions for the period 1990-2018. For this reason, a unit root test was applied to variables whose natural logarithm was taken. Tests showed that all series are stable of the same degree. Engle&Granger(1987) and Granger&Yoon(2002) tests were used to determine the cointegration relationship between variables. The crouching error correction model(CECM) was applied to determine the causality relationship. According to the results of the analysis; i) In terms of the Engle&Granger(1987) test, there was no long-term relationship between variables. ii) According to the Granger&Yoon(2002) test, it was determined that there is a bidirectional hidden cointegration relationship between the positive shocks of carbon dioxide emissions and negative shocks of foreign direct invesment outflows. iii) There is a bidirectional asymmetric causality relationship between the positive shocks of carbon dioxide emissions and the negative shocks of foreign direct invesment outflows. iv) It is observed that 1% negative shocks in foreign direct invesment outflows reduce positive shocks in carbon dioxide emissions by 0,26%. As a result, since negative situations in foreign direct invesment outflows have an effect on improving the quality of the environment, the environmental dimension should be taken into account in the policies to be made.

scholarly journals Curva de Kuznets Ambiental y determinantes de las emisiones de C02 en Ecuador: un enfoque de cointegración

2021 ◽  
Vol 2 (5) ◽  
pp. 6453-6474
Author(s):  
Leobaldo Enrique Molero Oliva ◽  
Tanya Shyrna Andino Chancay ◽  
Mayra Iveth Párraga Mogrovejo ◽  
Holger Esteban Álava Martínez ◽  
Holger Fabrizzio Bejarano Copo
Keyword(s):  
Carbon Dioxide ◽  
Economic Activity ◽  
Carbon Dioxide Emissions ◽  
Primary Energy ◽  
Environmental Crisis ◽  
Kuznets Curve ◽  
Environmental Deterioration ◽  
The Face ◽  
Per Capita ◽  
The Impact

La hipótesis de la Curva de Kuznets Ambiental es de gran importancia para comprender la relación entre la actividad económica y la degradación ambiental. Dada la situación actual de cambio climático y crisis ambiental, se ha vuelto importante investigar el impacto de la expansión económica en el medio ambiente.  El presente estudio tiene como objetivo comprobar la hipótesis de una CKA para Ecuador, para lo cual se estima un modelo empírico que permite identificar los principales determinantes de corto y largo plazo de las emisiones de dióxido de carbono per cápita como medida del deterioro ambiental para el período 1965-2019. La metodología propuesta está sustentada en el enfoque de cointegración de Pesaran y Shin (1999) en el marco de un modelo autorregresivo de rezagos distribuidos (ARDL). Los resultados confirman la relevancia del impacto del nivel de desarrollo o ingreso, apertura económica, precio del petróleo y consumo de energía primaria en relación con las emisiones per cápita de dióxido de carbono; asimismo, se verifica la CKA, lo que implica que el deterioro ambiental es una función creciente del nivel de actividad económica hasta un determinado nivel crítico de renta, que se ubicó en 3.688,6 USD a precios constante. Despues de ese nivel, el crecimiento se asocia con niveles progresivamente mayores de calidad ambiental. Sin embargo, las emisiones pueden incrementarse ante variaciones en el precio del petróleo y el consumo de emergería primaria. De este modo, se concluye que un crecimiento más elevado a corto plazo puede acelerar la transición del país hacia niveles de ingreso compatibles con menores emisiones.   The Environmental Kuznets Curve hypothesis is of great importance for understanding the relationship between economic activity and environmental degradation. Given the current situation of climate change and environmental crisis, it has become important to investigate the impact of economic expansion on the environment. The present study aims to test the hypothesis of a CKA for Ecuador, for which an empirical model is estimated that allows identifying the main short and long-term determinants of per capita carbon dioxide emissions as a measure of environmental deterioration for the period 1965-2019. The proposed methodology is based on the cointegration approach of Pesaran and Shin (1999) within the framework of an autoregressive model of distributed lags (ARDL). The results confirm the relevance of the impact of the level of development or income, economic openness, oil price and primary energy consumption in relation to per capita emissions of carbon dioxide; Likewise, the CKA is verified, which implies that environmental deterioration is a growing function of the level of economic activity up to a certain critical income level, which was located at USD 3,688.6 at constant prices. After that level, growth is associated with progressively higher levels of environmental quality. However, emissions may increase in the face of variations in the price of oil and consumption of primary emergencies. In this way, it is concluded that higher growth in the short term can accelerate the country's transition towards income levels compatible with lower emissions.

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

2020 ◽  
Vol 8 (2) ◽  
pp. 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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