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The impact of international trade on environmental quality: The case of transition countries

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  • Halicioglu, Ferda
  • Ketenci, Natalya

Abstract

This research presents first empirical time series evidence of the impact of international trade on environmental quality in the case of transition countries. The linkages between international trade and environmental quality are well established both theoretically and empirically in the literature. However, there exists no empirical study concerning environmental quality and international trade. Thus, our research aims at filling this gap. To this extent, fifteen transition countries are selected in order to test the impact of international trade on environmental quality. An econometric model between carbon emissions, energy use, income and trade openness was formed. This model was estimated via ARDL (Autoregressive Distributed Lag) approach to cointegration and GMM (Generalized Method of Moments) procedures. The econometric results from both of these econometric techniques support the existence of the EKC hypothesis only in three transition countries: Estonia, Turkmenistan and Uzbekistan. As for the impact of trade on environmental quality, the econometric results from both techniques vary in different transition countries. To this extent, the displacement hypothesis is validated in the case of Armenia, Estonia, Latvia, Kyrgyzstan and Russia. The paper also discusses policy implications of the empirical results, as well as offering policy recommendations.

Suggested Citation

  • Halicioglu, Ferda & Ketenci, Natalya, 2016. "The impact of international trade on environmental quality: The case of transition countries," Energy, Elsevier, vol. 109(C), pages 1130-1138.
  • Handle: RePEc:eee:energy:v:109:y:2016:i:c:p:1130-1138
    DOI: 10.1016/j.energy.2016.05.013
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    Cited by:

    1. HALICIOGLU, Ferda & Ketenci, Natalya, 2017. "Testing the Productivity Bias Hypothesis in Middle East Countries," MPRA Paper 83528, University Library of Munich, Germany.
    2. Ferda, HALICIOGLU & Kasim, EREN, 2013. "Testing Twin Deficits and Saving-Investment Nexus in Turkey," MPRA Paper 50098, University Library of Munich, Germany.
    3. Wang, Yuan & Zhang, Chen & Lu, Aitong & Li, Li & He, Yanmin & ToJo, Junji & Zhu, Xiaodong, 2017. "A disaggregated analysis of the environmental Kuznets curve for industrial CO2 emissions in China," Applied Energy, Elsevier, vol. 190(C), pages 172-180.
    4. Ahmad, Najid & Du, Liangsheng & Lu, Jiye & Wang, Jianlin & Li, Hong-Zhou & Hashmi, Muhammad Zaffar, 2017. "Modelling the CO2 emissions and economic growth in Croatia: Is there any environmental Kuznets curve?," Energy, Elsevier, vol. 123(C), pages 164-172.
    5. Solarin, Sakiru Adebola & Al-Mulali, Usama & Musah, Ibrahim & Ozturk, Ilhan, 2017. "Investigating the pollution haven hypothesis in Ghana: An empirical investigation," Energy, Elsevier, vol. 124(C), pages 706-719.
    6. repec:eee:enepol:v:117:y:2018:i:c:p:160-165 is not listed on IDEAS
    7. repec:eee:energy:v:149:y:2018:i:c:p:190-203 is not listed on IDEAS
    8. Kebede, Shemelis, 2017. "Modeling Energy Consumption, CO2 Emissions and Economic Growth Nexus in Ethiopia: Evidence from ARDL Approach to Cointegration and Causality Analysis," MPRA Paper 83000, University Library of Munich, Germany.

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