Testing the globalization-driven carbon emissions hypothesis: International evidence

Abstract

We empirically investigate the dynamic relationship between globalization and CO2 emissions for 87 (high, middle and low-income) countries. We utilize the cross-correlation approach to examine the well-known EKC hypothesis between globalization and environmental degradation. The results validate the inverted U-shaped EKC hypothesis for 16 (approximately 18%) from the high-and middle-income countries only, thereby highlighting that a rise in globalization will decrease carbon emissions for these countries in the future. On contrary, the results also confirm the U-shaped relationship between globalization and environmental degradation for 8% of the countries. The remaining countries do not have a U-or an inverted Ushaped relationship between globalization and CO2 emissions. Policy implications are also discussed.

Investigating the environmental effect of globalization: Insights from selected industrialized countries

“…So far, the existing literature have identified scale effect, technique effect and composition effect as possible environmental effects of globalization (Shahbaz, Mahalik, Shahzad and Hammoudeh, 2019;Tsurumi and Managi, 2010). The scale effect exists when globalization inhibits environmental quality due to its stimulating role in economic activity which leads to the use of more energy.…”

The role of natural resources abundance and dependence in achieving environmental sustainability: Evidence from resource‐based economies

“…In this light, technology and knowledge transfer through trade and economic integration may have important implications for natural resource extraction and environmental quality which refers to the scale effect of globalization. Also, the empirical literature documents that globalization has a negative effect on environmental degradation (Christmann & Taylor, 2001; Lee & Min, 2014; Shahbaz, Mahalik, et al, 2019b). Second, the technique effect of globalization will operate when globalization leads to more energy‐efficient technology.…”

“…Second, the technique effect of globalization will operate when globalization leads to more energy‐efficient technology. This technique effect may improve environmental quality as globalization enables SSA economies to import energy‐efficient technology from developed countries, which helps these economies to lower the environmental pressure of natural resource exploration (Shahbaz, Mahalik, et al, 2019b). Thirdly, globalization may change the structure of the economy toward a heavy industrial structure with higher levels of carbon‐intensive technology.…”

“…As a consequence, it is essential to integrate the potential role of globalization into the linkages between natural resource and environmental sustainability to assess whether the globalization trend in SSA is guided by environmental guidelines in the transformation to cleaner production strategies. However, in academia on the environmental consequences of globalization, scholars are not yet reached consensus (Shahbaz, Mahalik, Shahzad, & Hammoudeh, 2019b). The globalization of trade and research can help to foster new production processes and facilitate the adoption of cleaner technologies.…”

Does Forest Disturbance Matter to Climate Degradation? Evidence From Top Asian Economies

“…In a similar context, forestry is crucial for climate protection. It was found that 25% of all greenhouse gas emissions emerge in the course of deforestation (Beaty, 2019;Bennett, 2017;Niu et al, 2020;Shahbaz et al, 2019). Hence, in order to alleviate the damaging impact of global warming through greenhouse gases, forests hold the eminent position for storing sufficient levels of carbon dioxide (CO 2 ).…”