DOES TRADE OPENNESS EXACERBATE CARBON DIOXIDE EMISSION? : EVIDENCE FROM NIGERIA (original) (raw)
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The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries
Energies, 2020
Using a panel cointegration model developed based on the data extracted from the World Bank indicators, this study quantified the relationship between carbon emissions, energy consumption, economic growth, and trade openness in sub-Saharan African countries. It discovered from our analysis that there exists a long-run causality association amongst CO2 emissions, energy consumption, economic growth, and trade openness. The study noted the existence of the Environmental Kuznets Curve (EKC) in the panel using the square term for trade openness; it was found to have a negative impact, thus trade in the long run will somewhat decrease the environmental pollution in this region. The study results imply that there should be stringent policies and rigorous enforcement in sub-Saharan African to ensure sustainable growth without associative environmental issues.
Journal of Economics and Sustainable Development, 2014
This study investigated the influences of economic growth, increased urbanization and trade openness on carbon dioxide (CO 2) emissions in Africa. The study used time series data accessed from World Bank Data Base and Environmental Information Association (EIA) covering 51 years (1960-2010). The data were subjected to various econometric tests including Unit root tests before applying the bound test for cointegration using Autoregressive Distributed Lag (ARDL). It was found that GDP growth rate (p<0.05) and trade openness (p<0.05) were the major long-run and short-run determinants of emissions (Green House Gas emissions) on the continent. The findings which agreed with other environmental economists' and Kuznet's postulation informed us to recommend that African countries should begin to take proactive measures that will bring about green economy on the continent.
The objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO2 emissions in Nigeria based on autoregressive distributed lags (ARDL) approach for the period of 1971–2011. The result shows that variables were cointegrated as null hypothesis was rejected at 1 % level of significance. The coefficients of long-run result reveal that urbanization does not have any significant impact on CO2 emissions in Nigeria, economic growth, and energy consumption has a positive and significant impact on CO2 emissions. However, trade openness has negative and significant impact on CO2 emissions. Consumption of energy is among the main determinant of CO2 emissions which is directly linked to the level of income. Despite the high level of urbanization in the country, consumption of energy still remains low due to lower income of the majority populace and this might be among the reasons why urbanization does not influence emissions of CO2 in the country. Initiating more open economy policies will be welcoming in the Nigerian economy as the openness leads to the reduction of pollutants from the environment particularly CO2 emissions which is the major gases that deteriorate physical environment.
Trade Openness, Economic Growth and the Environment the Case of Ghana
2015
With carbon dioxide been the major cause of global warming and hence climate change, this paper investigated the effect of trade openness and economic growth on carbon dioxide emissions in Ghana. It employed the use of annual time series data from the World Bank’s World Development Indicators for the period 1970 to 2010. Using the Johansen multivariate test for cointegration, the study found out that carbon dioxide emissions increase with economic growth and trade openness in the long-run. The study found real GDP per capita and real GDP per capita squared to have positive and negative impacts on CO2 emissions in the long-run respectively. The long-run equilibrium equation also found a positive relationship between trade openness and CO2 emissions. To reduce carbon dioxide emissions and its impact, the study recommends that the nation engages in less polluting (carbon dioxide emitting) activities in its economic growth and trade expeditions, and also afforestation. At the end, limit...
Applied Economics and Finance
This paper examines the effects of per capita gross domestic product (GDP), trade openness, and urbanization on the total carbon dioxide emissions of Ghana using time-series annual data from 1960 to 2014. The 55-year period, from 1960 to 2014, covered economic transformation of Ghana from a low-income agrarian country to a lower-middle income country. The analysis used the autoregressive distributed lag method of co-integration. The results showed that per capita GDP, trade openness, and urbanization all significantly influenced both long-run and short-run levels of carbon dioxide emissions in Ghana. However, increased trade openness led to reduced total emissions, while rising per capita GDP and increased urbanization both increased total emissions albeit at different intensity levels.
SSRN Electronic Journal
This study investigates the effect of manufacturing activities and economic openness on CO 2 emissions in Ghana for the period 1975 to 2014 using WDI data of the subsector. We conducted the Bayer and Hanck combined cointegration test to examine the short run and long run relationship. The ARDL bounds test was conducted to test the robustness of results. In this study, we accounted for the non-linearity of the production-emission relationship by modelling the environmental impact parameter which represented the contribution of foreign technology to environmental quality. This allowed us to test for the Environmental Kuznets Curve (EKC) hypothesis between the subsector's development and its emissions of CO 2 and we used the Lind and Mehlum second order test to confirm an inverted U-shape relationship. The results revealed that manufacturing trade positively affects the sector's emission of CO 2 in the long and short run. The results also suggest a positive relationship between manufacturing production and CO 2 emissions in Ghana and further analysis revealed an inverted U relationship which peaks early. Finally, there is no significant relationship between FDI inflows and the manufacturing sector and its CO 2 emissions. Our findings highlighted the need for trade and industrial policies that prevent the dumping of manufacturing goods in Ghana while promoting local production of environmentally friendly manufacturing goods.
We model the impact of international trade and FDI on carbon emission in Nigeria to test the pollution haven hypothesis between 1981 and 2020 using the ARDL approach. The study utilises the Lee-Strazicich (L-S) unit root test to check for possible breaks since the traditional unit root test treats breaks as unit roots. The L-S result indicates the presence of structural breaks between 2006 and 2017. Additionally, we check for cointegration using the ARDL-bounds test and causal nexus using the Toda-Yamamoto granger causality test. The cointegration result suggests the existence of a long-run relationship among the variables, while the causality test indicates that FDI causes carbon emission, whereas international trade and carbon emission influence each other. The ARDL estimates show that international trade and FDI reduce carbon emissions in the short run. However, international trade and FDI positively affect Nigeria's carbon footprint in the long run, supporting the long-run p...
THE NEXUS BETWEEN TRADE OPENNESS AND CO2 EMISSIONS IN SELECTED BIMP-EAGA COUNTRIES
This study is to examine the relationship between trade openness and CO 2 emission in selected BIMP-EAGA countries for the period 1970-2008 using annual time series data. Augmented Dickey Fuller test, Johansen and Juselius test and Vector Error Correction Model have been employed to conduct the analysis. According to the empirical analysis, the longrun relationship is found between trade openness and environmental quality in Malaysia. The findings also indicate that there is a short-run uni-directional relationship in the Philippines. As a result, to lessen the environmental harm, countries become more open in trade in order to gain better transfer of new clean technology, knowledge and skills to improve their industrialization processes and achieve long-term environmental sustainability.
ECONOMIC GROWTH AND CARBON DIOXIDE EMISSION IN NIGERIA
Oyeranti Olugboyega Alabi, 2021
Environmental degradation measured by CO2 emissions is a significant challenge to sustainable economic development. Owing to the significant impact of the empirical relationship between economic growth and CO2 emissions, this study examined the relationship between economic growth and carbon dioxide emission with a view to testing the validity or otherwise of the Environmental Kuznets Curve (EKC) in Nigeria. Using Autoregressive Distributed Lags (ARDL) approach, the study employed data on trade openness, electricity consumption, population and the square of GDP as control variables in the analysis for the period 1970 to 2018. The result showed that electricity consumption and trade openness have a negative and significant relationship with CO2 emission, while population growth has a positive but insignificant impact on CO2 emission. This insignificant impact of population growth can be linked to the lower income of the populace. However, the estimated coefficient of the square of income is negative, while that of its level is positive and thus supports the existence of EKC in Nigeria. Increasing the degree of openness to international trade along with appropriate trade policies will contribute to the Nigerian economy as openness leads to the reduction of pollutants in the environment. Adoption of mixed energy consumption, especially through hydroelectricity and solar system, will drastically reduce the rate of carbon emission in Nigeria regarding the fact that Nigeria is well endowed with these resources.
Journal of Economic Science Research, 2021
The study scrutinized correlation between electricity production, trade, economic growth, industrialization and carbon dioxide emissions in Ghana. Our study disaggregated trade into export and import to spell out distinctive and individual variable contribution to emissions in Ghana. In an attempt to investigate, the study used time-series data set of World Development Indicators from 1971 to 2014. By means of Autoregressive Distributed Lag (ARDL) cointegrating technique, study established that variables are co-integrated and have long-run equilibrium relationship. Results of long-term effect of explanatory variables on carbon dioxide emissions indicated that 1% each increase of economic growth and industrialization, will cause an increase of emissions by 16.9% and 79% individually whiles each increase of 1% of electricity production, trade exports, trade imports, will cause a decrease in carbon dioxide emissions by 80.3%, 27.7% and 4.1% correspondingly. In the pursuit of carbon emissions' mitigation and achievement of Sustainable Development Goal (SDG) 13, Ghana need to increase electricity production and trade exports.