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The Impact of International Trade on Environmental Quality: Implications for Law

Author

Listed:
  • Pham Ngoc-Tham
  • Pham Trung-Kien

    (Faculty of Economics, Binh Duong University, Binh Duong Province590000, Vietnam)

  • Cao Viet Hieu

    (Binh Duong University, Binh Duong Province 590000, Vietnam)

  • Tran Ha Giang

    (Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam)

  • Vo Xuan Vinh

    (Institute of Business Research and CFVG Ho Chi Minh City, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu Street, Ward 6, District 3, Ho Chi Minh City, Vietnam)

Abstract

Our study illuminates the impact of international trade on environmental quality in lower-middle-income countries by using CO2 emission as the proxy for environmental degradation. Using the Pooled Mean Group estimation along with validity tests, the results show that in the long run, CO2 emission is affected by merchandise export, merchandise import, FDI, GDP per capita, and renewable energy consumption. The impact of trade on CO2 emission is mixed because our findings show that merchandise export and import have opposite effects. In addition, our results reveal that Environmental Kuznets Curve exists in the long run with N-sharped. The increase in GDP per capita leads to the raise of CO2 emission at first, but later comes the decrease and then increase. The paper has relevant implications for law makers.

Suggested Citation

  • Pham Ngoc-Tham & Pham Trung-Kien & Cao Viet Hieu & Tran Ha Giang & Vo Xuan Vinh, 2020. "The Impact of International Trade on Environmental Quality: Implications for Law," Asian Journal of Law and Economics, De Gruyter, vol. 11(1), pages 1-12, April.
    • Handle: RePEc:bpj:ajlecn:v:11:y:2020:i:1:p:12:n:2
    DOI: 10.1515/ajle-2020-0001
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    Cited by:

    1. Taner Akan & Halil İbrahim Gündüz & Tara Vanlı & Ahmet Baran Zeren & Ali Haydar Işık & Tamerlan Mashadihasanli, 2023. "Why are some countries cleaner than others? New evidence from macroeconomic governance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6167-6223, July.
    2. Sorroche-del-Rey, Yolanda & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2023. "Interrelationship between international trade and environmental performance: Theoretical approaches and indicators for sustainable development," MPRA Paper 119918, University Library of Munich, Germany.
    3. Nabil Maalel, 2024. "Renewable Energy Transition, Trade Openness, and CO2 Emissions Nexus in the Middle East," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 434-441, May.

    More about this item

    Keywords

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    JEL classification:

    • 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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