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The Impact Of Globalization On Co2 Emissions In China

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  • MUHAMMAD SHAHBAZ

    (www.ciitlahore.edu.pk Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan)

  • SALEHEEN KHAN

    () (Department of Economics Minnesota State University, Mankato 121 Morris Hall, Mankato, MN 56002, Saskatchewan, Canada)

  • AMJAD ALI

    () (Department of Economics, University of the Punjab, Lahore, Pakistan)

  • MITA BHATTACHARYA

    () (Department of Economics, Monash University, Caulfield, Victoria 3145, Australia)

Abstract

This paper examines the environmental kuznets curve (EKC) hypothesis for China in the presence of globalization. We have applied Bayer and Hanck combined cointegration test as well as the auto regressive distributed lag (ARDL) bounds testing approach to cointegration by accommodating structural breaks in the series. The causal relationship among the variables is investigated by applying the vector error correction method (VECM) causality framework. The study covers the period of 1970–2012. The results confirm the presence of cointegration among the variables. Furthermore, the EKC hypothesis is valid in China both in short and long runs. Coal consumption increases carbon dioxide (CO2) emissions significantly. The overall index and sub-indices of globalization indicate that globalization in China is decreasing CO2 emissions. The causality results reveal that economic growth causes CO2 emissions confirming the existence of the EKC hypothesis. The feedback effect exists between coal consumption and CO2 emissions. CO2 emissions Granger causes globalization (social, economic and political).

Suggested Citation

  • Muhammad Shahbaz & Saleheen Khan & Amjad Ali & Mita Bhattacharya, 2017. "The Impact Of Globalization On Co2 Emissions In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(04), pages 929-957, September.
  • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:04:n:s0217590817400331
    DOI: 10.1142/S0217590817400331
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    5. Le Hoang Phong & Dang Thi Bach Van & Ho Hoang Gia Bao, 2018. "The Role of Globalization on CO2 Emission in Vietnam Incorporating Industrialization, Urbanization, GDP per Capita and Energy Use," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 275-283.
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    8. Audi, Marc & Ali, Amjad, 2018. "Determinants of Environmental Degradation under the Perspective of Globalization: A Panel Analysis of Selected MENA Nations," MPRA Paper 85776, University Library of Munich, Germany.
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    More about this item

    Keywords

    China; coal consumption; globalization; CO2 emissions;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • A10 - General Economics and Teaching - - General Economics - - - General

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