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Examining Trade Mechanism of International Carbon Dioxide Emission: Evidence from Major Emitter Countries

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  • Mehmet Demiral

    (Department of Economics, Nigde University, Nigde, Turkey)

Abstract

This study examines factors affecting the changes in the net exports of the carbon dioxide (CO2 ) emissions embodied in global trade, conducting seemingly unrelated regression-based generalized least square (GLS) method. The study uses balanced panel data sets of 34 OECD and 7 major nonOECD countries in the G-20 and the period of 1996-2011. Along with various explanatory variables, we also add interaction terms between structural changes and income variables for crosschecking. Results reveal that trade openness leads to increase in emission exports, while GDP per capita has a slight negative effect. Net oil export per capita is the most important factor raising the emission export. The finding that structural changes also affect emission density affirms the importance of technological progress. Considering international trade pattern, overall results underline that nobody is responsible for global emission individually since countries emit for others. For trade mechanism of emission reduction, ideal and global green trade implications seem to be appropriate policy initiatives

Suggested Citation

  • Mehmet Demiral, 2016. "Examining Trade Mechanism of International Carbon Dioxide Emission: Evidence from Major Emitter Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 258-265.
    • Handle: RePEc:eco:journ2:2016-02-14
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    Citations

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    Cited by:

    1. Chuanwang Sun & Lanyun Chen & Guangxiao Huang, 2019. "Decomposition Analysis of CO 2 Emissions Embodied in the International Trade of Russia," Sustainability, MDPI, vol. 12(1), pages 1-22, December.
    2. Nguyen Phuc Canh & Su Dinh Thanh & Christophe Schinckus & Jo Bensemann & Lai Trung Thanh, 2019. "Global Emissions: A New Contribution from the Shadow Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 320-337.
    3. Mehmet Demiral & Emrah Eray Akça & Ipek Tekin, 2021. "Predictors of global carbon dioxide emissions: Do stringent environmental policies matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18337-18361, December.

    More about this item

    Keywords

    Carbon Dioxide Emission; Emission Export; Kuznets Curve; SUR model; Structural Change;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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