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Do Globalisation and Environmental Policy Stringency affect the Environmental Terms of Trade? Evidence from the V4 countries

Author

Listed:
  • Athanasios Kampas

    (Agricultural University of Athens)

  • Katarzyna Czech

    (Department of Econometrics and Statistics, Institute of Economics and Finance, Warsaw University of Life Sciences)

  • Stelios Rozakis

    (Technical University of Crete, Lab of Bioeconomy and Biosystems Economics, School of Environmental Engineering)

Abstract

This paper examines the links between globalisation and environmental policy stringency with the environmental terms of trade. The existence of dynamic links among the variables were explored using cross-correlations and Granger Causality tests. According to the results, the de jure and the de facto globalisation measures have different environmental impacts. Also, despite the fact that all V4 countries have introduced strict environmental policies, especially since 2000, the relative strength of these policies lag behind the maximum OECD stringency. As a result, the pollution heaven hypothesis cannot be excluded. The policy implications of the results are briefly discussed.

Suggested Citation

  • Athanasios Kampas & Katarzyna Czech & Stelios Rozakis, 2021. "Do Globalisation and Environmental Policy Stringency affect the Environmental Terms of Trade? Evidence from the V4 countries," Working Papers 2021-1, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2021-1
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    References listed on IDEAS

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    Cited by:

    1. Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    2. Zhang, Wenting & Wang, Zibang & Adebayo, Tomiwa Sunday & Altuntaş, Mehmet, 2022. "Asymmetric linkages between renewable energy consumption, financial integration, and ecological sustainability: Moderating role of technology innovation and urbanization," Renewable Energy, Elsevier, vol. 197(C), pages 1233-1243.
    3. Li, Sheng & Samour, Ahmed & Irfan, Muhammad & Ali, Madad, 2023. "Role of renewable energy and fiscal policy on trade adjusted carbon emissions: Evaluating the role of environmental policy stringency," Renewable Energy, Elsevier, vol. 205(C), pages 156-165.

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    More about this item

    Keywords

    Pollution Haven Hypothesis; Globalisation; Ecological Footprint of exports/ imports; Environmental Terms of Trade;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • 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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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