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Effects of energy and economic growth on CO2 emissions: what does globalization matter?

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  • Yi-Bin Chiu

    (Southwestern University of Finance and Economics, West Institute for Economic Research)

  • Wenwen Zhang

    (Southwestern University of Finance and Economics, West Institute for Economic Research)

Abstract

Carbon dioxide emission has become a global issue, and its global impacts are even more pronounced with the deepening of globalization. In this context, this study investigates the non-linear role of globalization in the energy use-CO2 nexus and real income-CO2 nexus in 95 countries by utilizing the panel smooth transition regression model. The results show a negative effect of globalization on carbon dioxide emissions across 95 countries. Under a high level of globalization, we find that the more globalization is, the less carbon dioxide emissions are in countries with high and low income levels and in net energy exporters. A positive effect of globalization on carbon dioxide emissions is found in net energy importers. Energy use, real income, and investment have different impacts on carbon dioxide emissions under different levels of globalization.

Suggested Citation

  • Yi-Bin Chiu & Wenwen Zhang, 2025. "Effects of energy and economic growth on CO2 emissions: what does globalization matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(12), pages 28691-28710, December.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:12:d:10.1007_s10668-022-02522-0
    DOI: 10.1007/s10668-022-02522-0
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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