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Export quality upgrading and environmental sustainability: Evidence from the East Asia and Pacific Region

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  • Trinh, Vu Quang
  • Nguyen, Anh Thi Quynh
  • Vo, Xuan Vinh

Abstract

In this study, we examine the effect of export quality upgrading through evolution of energy mix and transportation on environmental sustainability using panel cointegration techniques. Utilizing a dataset of East Asia and Pacific countries, we find that the export quality amelioration of goods and services tends to increase the carbon-produced intensity. Economically, a 1% rise in the export quality index could surge CO2 emissions by 0.71%. However, such a relationship is nonlinear as reflected through an inverted U-shaped linkage between export quality and environmental performance, i.e., evolution in energy use, economic growth, transportation and trade openness can reduce CO2 emissions when it reaches a certain threshold. The main results survive when we re-estimate all models by substituting production-based CO2 emissions by Consumption Emissions and Economic Complexity Index of Hidalgo and Haussmann.

Suggested Citation

  • Trinh, Vu Quang & Nguyen, Anh Thi Quynh & Vo, Xuan Vinh, 2022. "Export quality upgrading and environmental sustainability: Evidence from the East Asia and Pacific Region," Research in International Business and Finance, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531922000204
    DOI: 10.1016/j.ribaf.2022.101632
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    More about this item

    Keywords

    Export quality upgrading; Energy mix; Transportation evolution; CO2 emissions; East Asia and Pacific Region;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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