The Impact of Trade Openness on Environmental Pollution

2015 ◽  
pp. 221-232 ◽  
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.

scholarly journals The Impact of Energy, Agriculture, Macroeconomic and Human-Induced Indicators on Environmental Pollution from 1971 to 2011

2016 ◽  
Author(s):  
Samuel Asumadu-Sarkodie ◽  
Phebe Asantewaa Owusu
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Environmental Pollution ◽  
Carbon Dioxide Emissions ◽  
Crop Production ◽  
Renewable Energy Sources ◽  
Electricity Production ◽  
Kuznets Curve ◽  
Reduce Carbon Dioxide ◽  
The Impact

In this study, the impact of energy, agriculture, macroeconomic and human-induced indicators on environmental pollution from 1971 to 2011 is investigated using the statistically inspired modification of partial least squares (SIMPLS) regression model. There was evidence of a linear relationship between energy, agriculture, macroeconomic and human-induced indicators and carbon dioxide emissions. Evidence from the SIMPLS regression shows that a 1% increase in crop production index will reduce carbon dioxide emissions by 0.71%. Economic growth increased by 1% will reduce carbon dioxide emissions by 0.46%, thus supports the environmental Kuznets curve hypothesis that an increase in a country’s economic growth leads to a reduction in environmental pollution. An increase in electricity production from hydroelectric sources by 1% will reduce carbon dioxide emissions by 0.30%, thus increasing renewable energy sources in Ghana’s energy portfolio will help mitigate carbon dioxide emissions. Increasing Enteric Emissions by 1% will increase carbon dioxide emissions by 4.22% and a 1% increase in the Nitrogen content of Manure Management will increase carbon dioxide emissions by 6.69%. The SIMPLS regression forecasting exhibited a 5% MAPE from the prediction of carbon dioxide emissions.

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.

The Impact of Air Transportation on Carbon Dioxide, Methane, and Nitrous Oxide Emissions in Pakistan: Evidence from ARDL Modelling Approach

2018 ◽  
Vol 3 (6) ◽  
pp. 7-32 ◽  
Author(s):  
Syeda Anam Hassan ◽  
Misbah Nosheen
Keyword(s):  
Carbon Dioxide ◽  
Nitrous Oxide ◽  
Carbon Dioxide Emissions ◽  
Air Transportation ◽  
Methane Emissions ◽  
Nitrous Oxide Emissions ◽  
Positive Relation ◽  
Long Run ◽  
The Impact ◽  
Bound Test

No one can deny the progression and innovation in the aviation transportation collected at national and international level. But the accountancy of the impact of air transportation on environmental degradation is naive and emerging trend of the current era. The air transportation versus environment is the key contribution to the literature that is solely conducted for Pakistan first time in this context. The objective of this research is to compute the impact of air transportation on carbon dioxide emissions, nitrous emissions and methane emissions separately in the three models by applying ARDL bound test approach during 1990 to 2017. The result depicts significant and positive relation of air transportation (carriage) to carbon dioxide emissions (0.77), nitrous emissions (0.20) and methane emissions (0.38) in long-run. The short-run results infer that the air transportation (passenger) has significantly positive relation to carbon dioxide emissions (0.278), nitrous emissions (0.207), and methane emissions (0.080). The econometric outcomes show the significant and direct relation to transportation (both passenger and cargo) to carbon dioxide, methane, and nitrous oxide emissions in short and long-run. Moreover, per capita GDP, population density, and energy demand also significantly affect the environment showing significant and positive coefficients to all three categories (carbon dioxide, methane, and nitrous oxide) of emission. In case of Pakistan, FDI and trade for this duration didn’t significantly contribute to the CO2, NO2, and methane emissions. Since the last decade the economic issues of Pakistan like terrorism, political instability, energy crises, and poor management along with the worst performance by tertiary sectors have severely hit the economy, and as a result, the FDI and trade sector has tormented in a substantial proportion. Finally, pairwise Granger causation also supports the short and long-run consequences. The outcomes suggested that the fuel-efficient energy use and technological diversification in the transportation sector are essential to mitigate the degrading environmental emissions.

scholarly journals The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union

Energies ◽  
2020 ◽  
Vol 13 (18) ◽  
pp. 4838 ◽  
Author(s):  
Nuno Carlos Leitão ◽  
Daniel Balsalobre Lorente
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Carbon Dioxide ◽  
Renewable Energy ◽  
Carbon Dioxide Emissions ◽  
Trade Openness ◽  
Cointegration Test ◽  
The European Union ◽  
Long Run ◽  
Tourism Arrivals

This paper evaluates the link between economic growth, renewable energy, tourism arrivals, trade openness, and carbon dioxide emissions in the European Union (EU-28). As an econometric strategy, the research uses panel data. In the first step, we apply the unit root test, and the results demonstrated that the variables used in this study are integrated I (1) in the first difference. In the second step, we apply the Pedroni cointegration test, and Kao Residual cointegration test, and we observe that the variables are cointegrated in the long run. The panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), and generalized moments system (GMM-System) estimator are considered in this research. The econometric results proved that trade openness and renewable energy decreased climate change and environmental degradation. The empirical study also found a positive effect of economic growth on carbon dioxide emissions. Moreover, tourism arrivals are negatively correlated with carbon dioxide emissions, showing sustainability practices of the tourism sector on the environment. Furthermore, carbon dioxide emissions in the long run present a positive impact, indicating that climate change increases. In this study, we also consider the recent methodology of Dumitrescu–Hurlin to observe the causality and the relationship between renewable energy, trade openness, economic growth, tourism arrivals, and carbon dioxide emissions.

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 The Impact of Renewable Energy on Carbon Dioxide Emissions: An Empirical Analysis of Selected South Asian Countries

2019 ◽  
Vol 9 (4) ◽  
pp. 527-534
Author(s):  
A. Waheed ◽  
M. Tariq
Keyword(s):  
Carbon Dioxide ◽  
Renewable Energy ◽  
South Asian ◽  
Carbon Dioxide Emissions ◽  
Trade Openness ◽  
Asian Countries ◽  
Energy Trade ◽  
The Impact ◽  
South Asian Region ◽  
Nonrenewable Energy

This study attempts to explore the impact of renewable energy, nonrenewable energy, trade openness and urbanization on carbon dioxide emissions in the selected South Asian countries over the period 1990 to 2014. The study used Panel Fully Modified Ordinary Least Square (FMOLS) for analyzing the relationship between renewable energy, nonrenewable energy, trade openness, urbanization, and carbon dioxide emissions. The results from the FMOLS show that renewable energy is negatively associated with emissions, whereas nonrenewable energy is positively associated with CO2 emissions. Furthermore the empirical estimation revealed that the increase in trade openness increases CO2 emissions. Interestingly, urbanization decreases carbon dioxide emissions in our analysis of selected South Asian region. It implies that increasing the use of renewable energy is an effective policy to mitigate global warming in the South Asian region.

scholarly journals The Nexus between Environmental Degradation, Income and Energy Consumption in Emerging Countries

2016 ◽  
Author(s):  
Cengiz Aytun ◽  
Cemil Serhat Akın ◽  
Neşe Algan
Keyword(s):  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Environmental Degradation ◽  
Emerging Economies ◽  
Carbon Dioxide Emissions ◽  
Environmental Kuznets Curve ◽  
Estimation Methods ◽  
Kuznets Curve ◽  
Environmental Kuznets Curve Hypothesis

Today, especially in developing countries, environmental pollution threatens human life. Environmental quality is one of the most important sources of human welfare. Therefore, it is becoming increasingly important to understand the relationship between environmental degradation, income and energy consumption. The aim of this study is to investigate the nature of relationships among the carbon dioxide emissions, economic growth and energy consumption for emerging economies. For this purpose, Environmental Kuznets Curve hypothesis have been tested for 10 emerging economies for the years from 1980 to 2010. Data were brought together from the World Bank development indicators database. In order to test of Environmental Kuznets Curve hypothesis IPS panel unit root, Pedroni panel cointegration and FMOLS estimation methods are used. Results indicate that energy consumption has a positive and significant effect on carbon dioxide emissions. Results indicate that energy consumption has a positive and significant effect on carbon dioxide emissions. The findings also show that per capita GDP follows an inverted U-shape pattern associated with the Environmental Kuznets Curve hypothesis. This situation validates the policies which assert that environmental pollution decreases with income growth.

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.

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