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Carbon Emission from Liquid Fuel and Pollution Haven Hypothesis

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Green Circular Economy

Part of the book series: Circular Economy and Sustainability ((CES))

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Abstract

In this chapter, using a panel of 62 countries over 34 years, we provide evidence in favor of EKC hypothesis for carbon dioxide emission from liquid fuel consumption. This relationship is robust to inclusion of additional covariates used in the literature. We test pollution haven hypothesis for liquid fuel emission using trade to GDP ratio in an extended EKC framework. Our regression results based on panel pooled mean group estimator, fixed effect conditional quantile regression, fixed effect panel regression, and fixed effect panel threshold regression suggest that the impact of trade on liquid fuel emission depends upon the level of income. At higher level of income, increase in trade leads to lower liquid fuel emission. Results also suggest that at high level of per capita income the elasticity of liquid fuel emission with respect to energy consumption is lower, but the elasticity of liquid fuel emission with respect to financial development is higher.

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Notes

  1. 1.

    https://www.eia.gov/energyexplained/us-energy-facts/.

  2. 2.

    https://www.eia.gov/beta/international/data/browser/.

  3. 3.

    See Stata manual on xtcointtest.

  4. 4.

    To the best of our knowledge, there is no test available to determine the optimal number of lag in PMG estimator.

  5. 5.

    https://datahelpdesk.worldbank.org/knowledgebase/articles/906519.

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Author information

Authors and Affiliations

  1. Fellow and Former Head, Trade, Commerce and Strategic Economic Dialogue, NITI Ayog, Government of India, India

    Badri Narayanan Gopalakrishnan

  2. Department of Finance and Business Economics, South Campus, University of Delhi, India

    Apra Sinha

Authors
  1. Badri Narayanan Gopalakrishnan
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  2. Apra Sinha
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Corresponding author

Correspondence to Apra Sinha .

Editor information

Editors and Affiliations

  1. Department of Environmental Studies, PGDAV College, University of Delhi, New Delhi, India

    Pardeep Singh

  2. Centre for Science and Environment, New Delhi, India

    Anamika Yadav

  3. Department of Economics, PGDAV College, University of Delhi, New Delhi, India

    Indranil Chowdhury

  4. Central Public Works Department (CPWD), Government of India, New Delhi, India

    Ravindra Pratap Singh

Appendices

Appendix

9.1.1 List of Countries

(1) Antigua and Barbuda, (2) Australia, (3) Burundi, (4) Benin, (5) Bangladesh, (6) Bahrain, (7) Belize, (8) Bolivia, (9) Central African Republic, (10) Switzerland, (11) Chile, (12) Cameroon, (13) Costa Rica, (14) Dominica, (15) Denmark, (16) Dominican Republic, (17) Algeria, (18) Ecuador, (19) Gabon, (20) Gambia, (21) Guatemala, (22) Honduras, (23) Indonesia, (24) India, (25) Iceland, (26) Israel, (27) Jamaica, (28) Jordan, (29) Japan, (30) Kenya, (31) Sri Lanka, (32) Madagascar, (33) Mexico, (34) Mali, (35) Malawi, (36) Malaysia, (37) Niger, (38) Nigeria, (39) Nicaragua, (40) Norway, (41) Nepal, (42) Pakistan, (43) Peru, (44) Paraguay, (45) Rwanda, (46) Saudi Arabia, (47) Sudan, (48) Senegal, (49) Singapore, (50) Sierra Leone, (51) El Salvador, (52) Sweden, (53) Seychelles, (54) Chad, (55) Togo, (56) Thailand, (57) Tunisia, (58) Turkey, (59) Uruguay, (60) United Kingdom, (61) the United States, and (62) Vanuatu.

9.1.2 High-Income Countries Based on World Bank Classification

Country Names: (1) Antigua and Barbuda, (2) Australia, (3) Bahrain, (4) Switzerland, (5) Chile, (6) Denmark, (7) United Kingdom, (8) Iceland, (9) Israel, (10) Japan, (11) Norway, (12) Saudi Arabia, (13) Singapore, (14) Sweden, (15) Seychelles, and (16) the United States

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Gopalakrishnan, B.N., Sinha, A. (2023). Carbon Emission from Liquid Fuel and Pollution Haven Hypothesis. In: Singh, P., Yadav, A., Chowdhury, I., Singh, R.P. (eds) Green Circular Economy. Circular Economy and Sustainability. Springer, Cham. https://doi.org/10.1007/978-3-031-40304-0_9

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