Environmental regulation and love for variety

Echazu, Luciana; Heintzelman, Martin D.

doi:10.1111/roie.12382

Cited by 4 publications

(9 citation statements)

References 32 publications

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“…The studies of Haupt (2006), Cole et al (2010), Grether et al (2010), Roy (2017), and Echazu and Heintzelman (2018) support the idea that intra-industry trade (IIT) is less pollutant compared to other trade allowing to reduce climate change associated with product differentiation. These arguments are valid in the economic context of monopolistic competition (Krugman 1979;Krugman 1980).…”

Section: Methodsmentioning

confidence: 77%

“…The introduction of this hypothesis aims to explore whether the agricultural intra-industry trade allows reducing climate change and GHG effects in the EU. Analysing the agricultural intra-industry trade on carbon dioxide emissions is still relatively scarce in the empirical literature compared to theoretical models supported by monopolistic competition (Copeland and Taylor 1994;Gürtzgen and Rauscher 2000;Haupt 2006;Echazu and Heintzelman 2018). On the other hand, most empirical works assess only the relationship between trade openness and carbon dioxide emissions, showing that there is a positive association between freer trade and greenhouse gas emission (Wang and Ang 2018;Balsalobre-Lorente et al 2019), based on the arguments of pollution-intensive production (Copeland and Taylor 2004).…”

Section: Methodsmentioning

confidence: 99%

“…Theoretical framework. A rich literature deals with the theoretical models explaining the association between IIT and CO 2 emissions based on monopolistic competition criterion (Gürtzgen and Rauscher 2000;Haupt 2006;Echazu and Heintzelman 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Following the theoretical models of monopolistic competition (Copeland and Taylor 1994;Gürtzgen and Rauscher 2000;Haupt 2006;Echazu and Heintzelman 2018), most of the researchers argue that intra-industry trade (IIT) allows reducing climate change.…”

Section: Literature Reviewmentioning

confidence: 99%

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The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union

Leitão¹,

Balogh²

2020

Agric. Econ. - Czech

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The reductions of climate change and greenhouse gas emissions are an essential objective of the European Union (EU) to achieving the reduction target by 20% by 2020. Along with energy consumption and agriculture, trade has a diverse impact on climate change. International trade usually negatively affects the environment, while the influence of intra-industry trade is more favourable. The paper investigates the impact of energy use, agriculture, and intra-industry trade on environmental pollution in EU countries using panel data for the period 2000–2014. The research frames the theoretical hypothesis that describing the relationship between agricultural intra-industry trade and climate change. The assumptions are confirmed by panel fixed effects, and Generalized Method of Moment (GMM) estimations, and the panel cointegration test. The empirical results have supported by the literature, and all variables used in this study are stationary applying panel unit root test. Results show that agricultural intra-industry trade, renewable energy is negatively correlated with climate change, confirming the less pollutant hypothesis, while economic growth and agricultural productivity induce environmental problems. This study confirms the theoretical hypotheses explaining the effect of intra-industry trade for agricultural products as well as the impacts of renewable energy use, agricultural land productivity, and economic growth on CO2 emissions.

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Section: Methodsmentioning

confidence: 77%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union

Leitão¹,

Balogh²

2020

Agric. Econ. - Czech

View full text Add to dashboard Cite

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“…The theoretical models that consider the relationship between trade and climate change are explained in the monopolistic competition context. In this perspective, we selected the works of Copeland and Taylor (1994), Gürtzgen and Rauscher (2000), Haupt (2006), and Echazu and Heintzelman (2018), and Mehra and Kohli (2018). The selection of theoretical models is related to the fact that they formulate a set of conceptual assumptions that operate between two countries (home and host) with a structure of monopolistic competition according to oligopoly logic in which decision-making obeys a sequential game between countries regarding the use or not of environmental regulation.…”

Section: Trade and Environmentmentioning

confidence: 99%

Testing the Role of Trade on Carbon Dioxide Emissions in Portugal

Leitão

2021

Economies

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This article considers the relationship between trade intensity, energy consumption, income per capita, and carbon dioxide emissions from 1970–2016 for the Portuguese economy. Considering the arguments of monopolistic competition, the article tests the hypotheses of trade and energy consumption on climate change. We use the autoregressive distributed lag-ARDL model, quantile regression, and cointegration models such as fully modified ordinary least squares (FMOLS), canonical cointegration regression, and dynamic ordinary least squares (DOLS) as an econometric strategy. The econometric results have support with the literature review. The variables used in this research are integrated with the first differences, as indicated by the unit root test. The empirical study proves that trade intensity contributes to environmental improvements. However, energy consumption presents a positive impact on CO2 emissions. The econometric results also demonstrated that a sustainable environmental system exists in the long run.

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The Role of Intra-Industry Trade, Foreign Direct Investment, and Renewable Energy on Portuguese Carbon Dioxide Emissions

2022

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This paper revisited the link between intra-industry trade (IIT) between Portugal and Spain and Portuguese carbon dioxide (CO2) emissions. The research also considers the effects of foreign direct investment (FDI) on CO2 emissions, pondering the arguments of the pollution haven hypothesis and the halo hypothesis. As an econometric strategy, this investigation has applied panel data, namely a Pooled Mean Group of an Autoregressive Distributed Lag (ARDL) model and Panel Quantile Regression (PQR). The preliminary unit root tests indicated that IIT, Portuguese and Spanish renewable energy, and Portuguese FDI are integrated into the first differences and stationary with the second generation test (Pesaran methodology). In the next step, this study applied the multicollinearity test and cross-dependence between the variables. The variance inflation factor test demonstrated that FDI and IIT have no multicollinear problems. However, as expected, collinearity exists between Portuguese and Spanish renewable energy. Regarding the cross-sectional dependence test, this investigation concluded that the variables have a dependence between them. The cointegration test revealed that the variables are overall cointegrated. In the econometric results with the ARDL estimator, this investigation has found that IIT between Portugal and Spain is negatively correlated with Portuguese CO2 emissions, showing that this type of trade encourages environmental improvements. However, the PQR demonstrates that there is an opposite relationship. According to this, Portuguese and Spanish renewable energy is negatively impacted by CO2 emissions, revealing that renewable energy aims to decrease pollution. Finally, Portuguese FDI reduces CO2 emissions, which is explained by product differentiation, innovation, and monopolistic competition.

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Environmental regulation and love for variety

Cited by 4 publications

References 32 publications

The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union

The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union

Testing the Role of Trade on Carbon Dioxide Emissions in Portugal

The Role of Intra-Industry Trade, Foreign Direct Investment, and Renewable Energy on Portuguese Carbon Dioxide Emissions

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