Development, Trade Openness, and Pollution: Is there any Threshold?
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Tarih
2022
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer Nature
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This study aims to investigate the relationship between income per capita, trade openness, and CO2 emissions in 87 countries over the 1970–2019 period. Our dynamic panel threshold estimation results suggest that income per capita provides data-driven estimated threshold for the impacts of income per capita on CO2 emissions. Above and below the threshold, we find that there is a monotonically decreasing and increasing relationship between income per capita and CO2 emissions, respectively, in advanced and emerging market and developing economies. We also find that trade openness constitutes endogenously determined threshold in explaining the effects of trade on pollution. Accordingly, trade openness is associated with lower pollution in advanced economies while it leads to higher pollution in emerging market and developing economies. This provides an empirical support to the validity of pollution haven hypothesis suggesting advanced economies with rigid environmental regulations may locate some pollution intensive productions into the emerging market and developing economies with lax environmental standards mainly by trade linkages. Based on the empirical findings in this study, we propose that countries may better to design and enforce sustainable development policies by placing the greener economy at the core. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.
Açıklama
Anahtar Kelimeler
Kaynak
Contributions to Finance and Accounting
WoS Q Değeri
Scopus Q Değeri
Q4
Cilt
Part F221
