Skip to main content

Advertisement

Log in

Effect of trade on ecological quality: a case of D-8 countries

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Sustainable development inculcates the process of preserving the environment for future generations while maintaining existing human needs. This study attempts to empirically investigate the relationship between CO2 emissions, GDP, energy consumption, and imports and exports using yearly data between 1980 and 2014 for the panel of eight developing countries (i.e., Bangladesh, Egypt, Iran, Indonesia, Malaysia, Nigeria, Pakistan, and Turkey). All the tests for cointegration establish the long-run association among the variables and confirm the environmental Kuznets curve (EKC) hypothesis for the panel of eight countries. GDP and energy consumption remained significant factors for emission intensity both in the long and short run. However, exports found to be positive factor for emissions in the long run only and imports spur emissions in the short run. The country-specific results validate EKC hypothesis for Bangladesh, Iran, Nigeria, Pakistan, and Turkey. The findings are policy oriented and suggest that the countries’ economic growth along with energy consumption and exports are highly emission intensive which require necessary adjustments at sustainable development policy front.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  • Ahmad N, Wyckoff A (2003) Carbon dioxide emissions embodied in international trade of goods, STI Working Paper Series DSTI/DOC (2003)15 (Paris, OECD). Available at http://www.oecd.org/sti/working-papers

  • Ahmed K (2014) Environmental Kuznets curve for CO2 emission in Mongolia: an empirical analysis. Manag Environ Qual 25(4):505–516

    Article  Google Scholar 

  • Ahmed K (2016) The sheer scale of China’s urban renewal and CO 2 emissions: multiple structural breaks, long-run relationship, and short-run dynamics. Environ Sci Pollut Res 23(16):16115–16126

    Article  CAS  Google Scholar 

  • Ahmed K, Ahmed S (2018) A predictive analysis of CO 2 emissions, environmental policy stringency, and economic growth in China. Environ Sci Pollut Res 25(16):16091–16100

    Article  CAS  Google Scholar 

  • Ahmed K, Ozturk I (2018) What new technology means for the energy demand in China? A sustainable development perspective. Environ Sci Pollut Res 25(29):29766–29771

    Article  Google Scholar 

  • Ahmed K, Ahmed N, Shahbaz M, Ozturk I, Long W (2016b) Modelling trade and climate change policy: a strategic framework for global environmental negotiators. J Water Clim Chang 7(4):731–748

    Article  Google Scholar 

  • Ahmed K, Shahbaz M, Kyophilavong P (2016c) Revisiting the emissions-energy-trade nexus: evidence from the newly industrializing countries. Environ Sci Pollut Res 23(8):7676–7691

    Article  CAS  Google Scholar 

  • Ahmed K, Bhattacharya M, Shaikh Z, Ramzan M, Ozturk I (2017) Emission intensive growth and trade in the era of the Association of Southeast Asian Nations (ASEAN) integration: an empirical investigation from ASEAN-8. J Clean Prod 154:530–540

    Article  Google Scholar 

  • Brown LR (2003) Shifting taxes, plan B: rescuing a planet under stress and a civilization in trouble. W.W. Norton & Co., New York

    Google Scholar 

  • Davis SJ, Caldeira K (2010) Consumption-based accounting of CO2 emissions. Proc Natl Acad Sci 107(12):5687–5692

    Article  CAS  Google Scholar 

  • Denton RV (1975) The energy cost of goods and services in the Federal Republic of Germany. Energy Policy 3(4):279–284

    Article  Google Scholar 

  • Dimaranan BV (2006) Global trade, assistance, and production: the GTAP 6 database, Center for Global Trade Analysis. Purdue University, West Lafayette

    Google Scholar 

  • Fang J, Gozgor G, Lu Z, Wu W (2019) Effects of the export product quality on carbon dioxide emissions: evidence from developing economies. Environ Sci Pollut Res 26(129):12181–121931-13

    Article  CAS  Google Scholar 

  • Farhani S, Ozturk I (2015) Causal relationship between CO 2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia. Environ Sci Pollut Res 22(20):15663–15676

    Article  CAS  Google Scholar 

  • Grossman GM, Krueger AB (1991) Environmental impacts of a North American Free Trade Agreement. National Bureau of Economic Research Inc

  • Halicioglu F, Ketenci N (2016) The impact of international trade on environmental quality: the case of transition countries. Energy 109:1130–1138

    Article  Google Scholar 

  • Hoerner JA, Bosquet B (2001) Environmental tax reform: the European experience. Center for a Sustainable Economy, Washington, DC

  • Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econ 90(1):1–44

    Article  Google Scholar 

  • Kondo Y, Moriguchi Y, Shimizu H (1998) CO2 emissions in Japan: influences of imports and exports. Appl Energy 59(2–3):163–174

    Article  CAS  Google Scholar 

  • Lenzen M, Pade L, Munksgaard J (2004) CO2 multipliers in multi-region input-output models. Econ Syst Res 16(4):391–412

    Article  Google Scholar 

  • Ling CH, Ahmed K, Muhamad R, Shahbaz M, Loganathan N (2017) Testing the social cost of rapid economic development in Malaysia: the effect of trade on life expectancy. Soc Indic Res 130(3):1005–1023

    Article  Google Scholar 

  • Ozturk I, Al-Mulali U, Saboori B (2016) Investigating the environmental Kuznets curve hypothesis: the role of tourism and ecological footprint. Environ Sci Pollut Res 23(2):1916–1928

    Article  Google Scholar 

  • Pedroni P (1999) Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxf Bull Econ Stat 61(S1):653–670

    Article  Google Scholar 

  • Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16(3):289–326

    Article  Google Scholar 

  • Peters GP, Hertwich EG (2008a) Post-Kyoto greenhouse gas inventories: production versus consumption. Climate Change 86(1–2):51–66

    Article  CAS  Google Scholar 

  • Peters GP, Hertwich EG (2008b) CO2 embodied in international trade with implications for global climate policy. Environ Sci Technol 42(5):1401–1407

    Article  CAS  Google Scholar 

  • Peters GP, Weber CL, Guan D, Hubacek K (2007) China’s growing CO2 emissions—a race between increasing consumption and efficiency gains. Environ Sci Technol 41(17):5939–5944

    Article  CAS  Google Scholar 

  • Proops JL, Faber M, Wagenhals G (1993) Policy conclusions for reducing CO2 emissions. In: Reducing CO2 emissions. Springer, Berlin, pp 271–277

    Chapter  Google Scholar 

  • Rhee HC, Chung HS (2006) Change in CO2 emission and its transmissions between Korea and Japan using international input–output analysis. Ecological Economics, 58(4):788–800

    Article  Google Scholar 

  • Shahbaz M, Bhattacharya M, Ahmed K (2016) CO2 emissions in Australia: economic and non-economic drivers in the long-run. Appl Econ 49(13):1273–1286

    Article  Google Scholar 

  • Shahbaz M, Bhattacharya M, Ahmed K (2017a) CO2 emissions in Australia: economic and non-economic drivers in the long-run. Appl Econ 49(13):1273–1286

    Article  Google Scholar 

  • Shahbaz M, Nasreen S, Ahmed K, Hammoudeh S (2017b) Trade openness–carbon emissions nexus: the importance of turning points of trade openness for country panels. Energy Econ 61:221–232

    Article  Google Scholar 

  • Wyckoff AW, Roop JM (1994) The embodiment of carbon in imports of manufactured products: implications for international agreements on green-house gas emissions. Energy Policy 22(3):187–194

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Khalid Ahmed.

Additional information

Responsible editor: Nicholas Apergis

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ahmed, K., Ozturk, I., Ghumro, I.A. et al. Effect of trade on ecological quality: a case of D-8 countries. Environ Sci Pollut Res 26, 35935–35944 (2019). https://doi.org/10.1007/s11356-019-06520-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-019-06520-0

Keywords

Navigation