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Trade Openness, Economic Growth, and Greenhouse Gas Emissions: An Empirical Examination of Carbon Dioxide and Methane Emissions

Author

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  • Manasoontorn, Rapeepat
  • Laksanacom, Aekkapat

Abstract

This research investigates the complex relationships between economic factors and environmental outcomes, focusing on carbon dioxide (CO2) and methane (CH4) emissions across 24 countries from 1998 to 2019. Utilizing data from the World Development Indicators and the Penn World Table, the study employs a regression model incorporating scale, technique, and composition effects to analyze the determinants of emissions. The findings reveal nuanced dynamics: while income per capita positively correlates with emissions, an inverted U-shaped relationship between income and CO2 emissions supports the Environmental Kuznets Curve hypothesis. Furthermore, disparities in factor abundance and technological innovation demonstrate varying impacts on emissions. Importantly, the study highlights the need for policy interventions that foster economic development while promoting environmental sustainability, reducing emissions from international trade, and encouraging the widespread adoption of low-carbon technologies.

Suggested Citation

  • Manasoontorn, Rapeepat & Laksanacom, Aekkapat, 2024. "Trade Openness, Economic Growth, and Greenhouse Gas Emissions: An Empirical Examination of Carbon Dioxide and Methane Emissions," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 31(2), December.
    • Handle: RePEc:ags:thkase:356819
    DOI: 10.22004/ag.econ.356819
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